California Pioneering Health Insurance Exchange
October 21 2010
Last month California became the first state to embrace health insurance exchanges in the nationwide push for health care reform. A key part of the Affordable Care Act, the exchanges will help individuals and families find group coverage at lower premiums, and will go into effect nationwide by 2014.
Health insurance exchanges are a new competitive private health insurance marketplace, where consumers will be able to ‘shop around’ for the best benefit packages and bundle plans. You can find more information about the exchanges on healthcare.gov.
From the San Diego Union Tribune:
The California Health Benefit Exchange will provide a place for small businesses and people without employer-based insurance to join together to buy health insurance at lower rates, aided by federal subsidies to low- and middle-income consumers.
The idea for the exchange is that millions of people who now pay top dollar for insurance because they’re buying individually or in small groups — or forgoing coverage because of cost — will benefit from the exchange’s bulk purchasing power to get a better price. The exchange also is charged with making it easier for consumers to compare plans and choose what works best for them.
The Affordable Care Act specifies that people with a household income between 133 percent and 400 percent of the poverty rate will get an immediate tax credit to help offset the cost of insurance. Depending on income, people would pay no more than 2 percent to 9.5 percent of their income on health insurance.
The legislation comes in the wake of an announced $49 million in grants by the U.S. Department of Health and Human Services, meant specifically for the creation of these exchanges. California was awarded $1 million to begin implementation.
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"Under new plans, no child under age 19 will be denied coverage for a pre-existing conditions, period. Adults who have been without insurance for six months and who have been unable to obtain insurance because of a pre-existing condition, can apply for coverage under the Pre-Existing Condition Insurance Plan (PCIP)."
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Insurers can no longer cut someone after the fact.
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New screening procedures are now in place for health care providers to eliminate fraud and waste in the health care system.
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Medicare Part D enrollees who hit the Medicare prescription drug benefit gap in 2010 will automatically receive a $250 rebate check.
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Effective immediately, qualified small employers get tax credits of up to 35% of premiums for offering coverage.
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America's new health care law makes it easier for you to find the quality, affordable health care that you and your family need.
