California is known for its varied climate and geography, as well as for its ethnically diverse population. By 2007, California's population has reached 37,700,000, making it the most populated state, the 13th fastest-growing in US. Having these numbers in mind, it is very clear why health insurance in this part of the world is so important. With growing hospital waiting lists and hygiene under scrutiny, health insurance is now vital and important for all the people that leave in this state. The personal income was $38,956 in 2006, ranking 11th in the US nation. Great number, one might say, meaning that Californians can afford to spend a few bucks on health insurance, for the peace of their minds.
In California, health insurance may be provided through a government-sponsored social insurance program, or from private insurance companies. Also, health insurance may be purchased on a group basis (e.g., by a company to cover its employees) or purchased by individual consumers. In each case, the covered groups or individuals pay premiums or taxes to help protect themselves from high or unexpected health care expenses.
But how exactly does this work? Health insurance works by estimating the overall risk of healthcare expenses and developing a routine finance structure (such as a monthly premium or annual tax) that will ensure that money is available to pay for the healthcare benefits specified in the insurance agreement. The benefit is administered by a central organization, most often either a government agency or a private or not-for-profit entity operating a health plan. Things are great so far. But what if man people get sick suddenly? Well, all the risks are calculated, operating with such big numbers leave almost no room for error. Basically, all insurance companies have great profit from this activity. Insurance companies use the term "adverse selection" to describe the tendency for only those who will benefit from insurance to buy it. Specifically when talking about health insurance, unhealthy people are more likely to purchase health insurance because they anticipate large medical bills. On the other side, people who consider themselves to be reasonably healthy may decide that medical insurance is an unnecessary expense; if they see the doctor once a year and it costs $300, that's much better than making monthly insurance payments of $450. But this was also taken into consideration by the insurance companies.
The U.S. market-based health care system, so the Californian system as well, relies heavily on private and not-for-profit health insurance, which is the primary source of coverage for most Americans. According to the United States Census Bureau, approximately 85% of Americans have health insurance; some 61% obtain it through an employer, while about 8% purchase it directly. Various government agencies provide coverage to about 27% of Americans, and these numbers are similar for California as well.
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The world of insurance can be confusing and sometimes it's easier to just delay the decision. But you need to consider the fact that medical costs are getting dearer and dearer. Unfortunately, many people can identify with the situation where they've been caught unawares with a huge medical bill that causes a financial crisis. Don't you want to be prepared if you suddenly find yourself or a family member with the expense of intensive dental care, a chronic illness, or an emergency operation? Being prepared means having health insurance.
Trying to decide what options available in health insurance are suitable for yourself or family can cause confusion and possibly a headache! So let's make it a little easier for you to begin.
Maybe you've decided that the Government program Medicaid or, if you're over 65, the Federal program Medicare, is all you need. The state decides if you are eligible for this health insurance, usually dependant on income. It is available for people with disabilities, pensioners and dependents. Under this program, you have very little choice in doctor, hospital, etc. Although the health care is usually sufficient, there may be long waiting lists.
If you want more insurance than the above, you must decide what you can afford to pay for your health insurance. Along with your financial limit, you must also decide what your requirements are. For example, are you looking primarily for something suited for one person, or for a couple, or a family? Do you need extras like dental care, physiotherapy and such like included, usually for extra costs? Do you want to be able to choose your own doctor if admitted to hospital? Do you have a particular hospital you would prefer to go to?
Types of Health Insurance:
Fee-for-service health insurance has two main parts: basic coverage and major medical. Basic coverage insures for short term expenses. When that is used up, major medical covers long-term expenses, which really protects you and your family against huge medical costs. This type of health cover is the most expensive as you are paying for medical cover regardless of how much health care is given.
Another health insurance type is through Health Maintenance Organizations (HMOs). For a paid monthly premium, the HMO will pay some of your medical costs depending on which plan you have chosen. They have lower premiums than other health plans but you don't have the choice of a doctor or facility.
Preferred Provider Organizations (PPOs) are a group of doctors & hospitals that give medical services to specific groups. This means your favorite doctor must be part of this group for you to receive reimbursement.
Disability insurance covers lost income if you are unable to continue to work due to long-term illness or injury. Only working-age people need to consider this type.
If you require care for a long period then Long Term Care Insurance is designed to cover expenses.
Often a stay in hospital cannot be avoided and this is where it gets expensive if you don't have health insurance. Hospital Indemnity Insurance will pay a preset amount for up to a certain number of days to cover costs.
The finer details of these types of insurance require research to match your needs with their services but this is important if you are to choose the best for you and/or your family. You need to have some idea of what you need to make an informed decision. There is a wealth of information online for you to read or you can talk to an insurance agent. Some plans are available online which you may choose to consider.
Summary:
Don't get caught with unexpected medical costs. Having health insurance will protect you and your family so that you can have necessary treatments when you require them without the added financial strain.
Both Dugu Mihai & Brooke Hayles are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
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