California Medical Insurance – How Will Health Care Reform Affect You?

The dust is finally beginning to settle in California. Many people have been putting off purchasing California medical insurance because they were waiting to see the changes from the government. The big hope among many Americans was more affordable coverage for everyone.  Although it doesn’t look like rates are going to fall anytime soon there has been some positive change that will happen this year.

  • Parents can keep adult children on their policies till the Childs 27th birthday.
  • Insurance companies will no longer be able to deny children coverage to children with preexisting conditions.
  • No more annual caps on coverage.
  • A new federal risk pool will be formed for adults with pre existing conditions to obtain coverage. Premiums will be high for these plans.
  • Small businesses will be entitled to a tax credit for 2009 and 2010, which could be as much as 50 percent of what they pay for their employees’ health insurance.
  • The “doughnut hole” closes for Medicare patients, making prescription medications more affordable for seniors. The government would offer a $250 rebate to Medicare beneficiaries to help pay their prescription drug costs when they hit the “doughnut hole.” Next year, Medicare beneficiaries would see a 50 percent discount on brand-name drugs to further close that gap.
  • Effective immediately, you can’t lose your insurance because you get sick. No more rescissions.

As you can see there have been some positive changes in our health care system. But unfortunately premiums for the average American aren’t going to change. In the next 4 years we will see health insurance exchanges being created for those who have low income situations. But if you don’t qualify as low income and you’ve been waiting to get California medical insurance because you thought premiums were going to go down don’t hold your breath.

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