| Health care has become very expensive these | | | | medical underwriting; qualifying creditable coverage |
| days. Health care insurance helps to provide | | | | must be applied towards the six-month waiting |
| security for any future health care expenses that | | | | period for preexisting conditions. Small group |
| may arise. Insurance can be purchased either | | | | health insurance policies differ from large group |
| privately or through an insurance broker certified | | | | health insurance policies in California. For small |
| by the State of California. Health Insurance policies | | | | group policies, the coverage should be provided on |
| are controlled by The California Department of | | | | a continued issue basis irrespective of any |
| Insurance. | | | | preexisting condition. |
| There are many kinds of California health | | | | California health insurance has another feature |
| insurance policies. There are suitable for different | | | | called Cal-COBRA, which is a California Law relating |
| kinds of people, needs, budgets, and lifestyles. | | | | to extension of current group insurance when |
| Each one has its own advantages and | | | | there is a qualifying event like termination of |
| disadvantages. The various kinds of California | | | | employment or reduction of hours from part-time |
| health insurance policies can be categorized as: | | | | to full-time. The extension period is 36 months. |
| Indemnity Policies (Traditional Fee-for-Service | | | | For Cal-CORBA to be applicable, the group policy |
| Insurance), Preferred Provider Organizations | | | | must be in force with 2-19 employees covered |
| (PPOs), Health Maintenance Organizations (HMOs | | | | on a minimum of 50% of the working days during |
| or Managed Care), Self-Insured Health Plans (Single | | | | the preceding calendar year or the preceding |
| Employer Self-Insured Plans) and Multiple Employer | | | | calendar quarter. Cal-COBRA is applicable to only |
| Welfare Arrangements (MEWAs). Indemnity | | | | indemnity policies, PPOs, and HMOs. It does not |
| insurance plans provide a greater choice of | | | | apply to individual health insurance policies and |
| hospital and doctors. In indemnity plans, the share | | | | self-insured plans. It however, covers church plans. |
| of the cost of the services is paid only after | | | | Cal-COBRA is regulated by the CDI and the |
| receiving the bill. You may be required to pay | | | | DMHC, depending on the type of coverage. |
| co-payment for covered medical services as well | | | | California offers special insurance policies for those |
| as deductible before the reimbursement. Managed | | | | small employers (2-50 employees) as well as for |
| care plans, on the other hand have lesser choice | | | | those who do not qualify for insurance because |
| of hospitals and doctors, as well as lower | | | | of income restrictions or preexisting conditions. |
| out-of-pocket costs. | | | | People who are not eligible for insurance under |
| California health insurance is marketed by individual | | | | COBRA, Cal-COBRA or Health Insurance |
| as well as group policies. Individual policies are for | | | | Portability and Accountability Act (HIPAA) can |
| people who: are not anyones dependents, do not | | | | purchase insurance under another special provision |
| get insurance from the employer or do not | | | | called Major Risk Medical Insurance Program |
| belong to any group or association that gives | | | | (MRMIP). Other California health insurance policies |
| group health insurance. Group health insurance has | | | | are: Healthy Families Program (HFP), Access for |
| some advantages over individual health insurance: | | | | Infants and Mothers Program (AIM), Pacific Health |
| the waiting period is only 6 months for preexisting | | | | Advantage (PacAdvantage), and other |
| conditions as compared to 1 year for the individual | | | | Supplemental Health Insurance Policies. |
| policies; large group health insurance is subject to | | | | |