Understanding Health Insurance Reform

California Health Insurance works with only the most reputable health insurance carriers, so you can be sure the insurance and quotes you receive are low cost, yet high quality.

Laguna Niguel, CA (prHWY.com) September 6, 2012 - Laguna Niguel, California - All of the hype surrounding health care reform can leave the average person confused while trying to figure out its effects on California insurance, so the team at California Health Insurance has developed a brief synopsis on the main issues from each side's perspective, as well as a basic explanation of the facts.

*Medicare will suffer from drastic cuts, and senior citizens will lose some benefits. While health care reform does slow the growth of Medicare spending over the next decade, it does not cut spending from one year to the next. The growth of fees paid to hospitals, home health agencies and other providers will be reduced, as well as payments to private Medicare Advantage insurance plans. While basic benefits provided under Medicare will be retained and some new benefits have been added, the aforementioned cuts in reimbursement to California insurance carriers may result in senior citizens paying hundreds of dollars more per year in out-of-pocket costs. The cuts may also prompt the reduction or elimination of extra benefits formerly included in private plans. However, one advantage of the legislation is the elimination of a co-pay for certain preventive services.

* The expansion of Medicaid will further burden strained state budgets. The Supreme Court eradicated this concern when it ruled that the law went too far in trying to force all states to expand Medicaid eligibility. Now that states can opt out of Medicaid expansion, federal spending under health care reform is projected to be $84 billion lower over the next 11 years than previously predicted, according to a Congressional Budget Office analysis. While it may prove more difficult for consumers to obtain Medicaid insurance in the states that forgo expansion, they do have the option to purchase health insurance via state exchanges or via agencies like California Health Insurance. We partner with top rated carriers and offer a free quote engine that allows insurance shoppers to compare plans.

* Americans will be unable to retain their current health insurance coverage. Opponents of the legislation have asserted that if an employer switches insurance carriers or reduces its share of premiums by more than 5%, the plan will lose its "grandfathered" status - that is, a plan in existence prior to adoption of the law - and employees will be forced to drop the coverage. "Grandfathered" plans are not required to offer health care reform consumer advantages like free preventive services, an increase in the annual dollar limits on benefits and improved access to out-of-network emergency care.
Truthfully, there are not many changes to be made, as the vast majority of currently "grandfathered" plans already offer some or all of the consumer protections designed by the law. Consequently, health insurance policyholders would likely see little to no changes to these benefits.

* The health care reform law will drive up costs and premiums. Critics argue that the aforementioned consumer protection provisions will force insurers to raise premiums, thereby increasing the cost of California insurance for policyholders. In response, the Obama administration has cited estimates from sources including the Urban Institute and Mercer that state that the maximum amount of increases brought about by the law is 1% to 2%. In reality, any long term prediction is speculative at best. Calculating the law's effect on health care costs - and subsequently, premiums - is tricky. This is partly due to the many factors that drive premium rates including charges determined by doctors and drug makers, the number of people that need care and how much insurers spend on administration or retain in profits.

The licensed and experienced agents at California Health Insurance are happy to answer any questions you may have about health care reform and how it may affect California insurance coverage. To speak with an agent or obtain free quotes on health insurance via our instant quote engine, go to www. California-Health-Insurance.com.

About California Health Insurance

California Health Insurance works with only the most reputable health insurance carriers, so you can be sure the insurance and quotes you receive are low cost, yet high quality. California Blue Cross has been around for many years and is one of the most stable companies in the industry. Our team of highly trained, dedicated and fully licensed agents is ready and eager to help insurance shoppers navigate the insurance process to find the right policy for their coverage needs and budgets.

Contact: dan@insuresaver.com
30012 Ivy Glenn Drive #220
Laguna Niguel, CA 92630
Phone
949.429.7000
800-366-2751
FAX
949.429.7077

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