California Could Be The First State To Launch Health Insurance Exchange
The Wall Street Journal reported 8/26 that the state legislature in California passed the second of two related bills 8/25 creating an online health-insurance marketplace, something which will start to happen all over the country as states rush to comply with Federal health care reform laws. Governor Arnold Schwarzenegger is expected to sign the bill into law, which would make California the first state to pass such legislation.
This could be a boon for small businesses like mine, Family inHome Caregiving of Monterey, which provides the elderly with caregiving service all over Monterey County, from Castroville and Moss Landing all the way down to Big Sur and the Carmel Highlands. An open exchange will be created for individuals and certain small businesses to shop for health insurance, as well as take advantage of federal subsidies if they qualify.
When the web site goes live, the exchange is expected to offer standardized and detailed information about plans to consumers so that they can compare them on an apples-to-apples basis. There will also be a toll-free number with "navigators" to help consumers choose a policy.
The exchanges aren't required to be up and running until January 2014 although many states are expected to start earlier. The coverage will also link to federal subsidy programs and government programs like Medicaid.
California's exchange will be huge: Researchers at U.C. Berkeley forecast that 2.4 mil. people would be eligible for a subsidy through the exchange, and another 2.2 mil. might purchase a policy without a subsidy. There are 3.8 mil. that might be eligible to purchase insurance for a small businesses like mine with less than 100 employees through the exchange.
One controversial part of the legislation is that the exchange will contain an independent board with members appointed by the Governor and legislative leaders as well as a seat for the state's Health Secretary. This board will be able to pick and choose which companies can participate in the exchange, which raised the ire of a number of insurance companies.
However, Bill Monning, chairman of the California Assembly's health committee said this would enable the board to act as a filter and ensure that plans offered represent the best quality and value. This is sure to keep insurance companies on their toes. Anyone who has ever had to purchase health insurance on their own knows that it can be a frustrating experience.
When I looked into getting health insurance for my company, which has mostly part-time employees caring for senior citizens, the agent advised me not to get it. He said that with so few full time employees, if one person came down with a very expensive illness, the policy would sky rocket and make it prohibitively expensive. Hopefully, with the new health reform laws, insurance companies will be forced to become more consumer friendly.
http://online.wsj.com/article/SB10001424052748704540904575452020633405364.html?mod=googlenews_wsj
This could be a boon for small businesses like mine, Family inHome Caregiving of Monterey, which provides the elderly with caregiving service all over Monterey County, from Castroville and Moss Landing all the way down to Big Sur and the Carmel Highlands. An open exchange will be created for individuals and certain small businesses to shop for health insurance, as well as take advantage of federal subsidies if they qualify.
When the web site goes live, the exchange is expected to offer standardized and detailed information about plans to consumers so that they can compare them on an apples-to-apples basis. There will also be a toll-free number with "navigators" to help consumers choose a policy.
The exchanges aren't required to be up and running until January 2014 although many states are expected to start earlier. The coverage will also link to federal subsidy programs and government programs like Medicaid.
California's exchange will be huge: Researchers at U.C. Berkeley forecast that 2.4 mil. people would be eligible for a subsidy through the exchange, and another 2.2 mil. might purchase a policy without a subsidy. There are 3.8 mil. that might be eligible to purchase insurance for a small businesses like mine with less than 100 employees through the exchange.
One controversial part of the legislation is that the exchange will contain an independent board with members appointed by the Governor and legislative leaders as well as a seat for the state's Health Secretary. This board will be able to pick and choose which companies can participate in the exchange, which raised the ire of a number of insurance companies.
However, Bill Monning, chairman of the California Assembly's health committee said this would enable the board to act as a filter and ensure that plans offered represent the best quality and value. This is sure to keep insurance companies on their toes. Anyone who has ever had to purchase health insurance on their own knows that it can be a frustrating experience.
When I looked into getting health insurance for my company, which has mostly part-time employees caring for senior citizens, the agent advised me not to get it. He said that with so few full time employees, if one person came down with a very expensive illness, the policy would sky rocket and make it prohibitively expensive. Hopefully, with the new health reform laws, insurance companies will be forced to become more consumer friendly.
http://online.wsj.com/article/SB10001424052748704540904575452020633405364.html?mod=googlenews_wsj
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