Effects of the Healthcare Reform in California

The state of California has breathed a huge sigh of relief because thanks to the Healthcare Reform in California an end is finally in sight for the massive California health insurance coverage problems. According to a UCLA study, approximately 25% or 8 million people in California do not have health coverage. This is the largest percentage of any state.

California health experts expect at least 66% of those currently uninsured will have a health plan by the time the Healthcare Reform in California is fully in place in 2014. Increased access to healthcare and lower costs are more perceived benefits.

Those who will not benefit from the California Health Insurance Reform include those with certain policies that may have a disruption in coverage. Those who are in higher income brackets will also have higher taxes to pay to cover the cost of the plan. There is also the fact that there is a significant portion of people living in California who cannot qualify because they are illegal immigrants.

Even certain California businesses like Kaiser Permanente stand to gain from the new legislation. An 11th hour change means that big nonprofit health insurance companies will only have to pay a new fee on half their premiums charged.

With all the benefits from the Healthcare Reform in California, California was instrumental in moving it forward in Congress.

California Health Insurance Reform Rules About Rates and Caps

The President pointed out the fact that individual health insurance policyholders have faced rate increases. This was an attempt to present health insurers in a poor light. However, the bill that passed does not include federal overseeing of health insurance rate increases. Regulations are spelled out only to give guidelines to states where there are none like California.

There are no longer lifetime caps on coverage. Medical insurance cannot be cancelled for unfair reasons. As of 2014 when everyone should have health insurance, providers will be obligated to accept all applicants.

Medicare recipients will find big changes as the government is cutting funding to the Medicare Advantage plan, with the goal of convincing recipients to opt for private insurance coverage.

Healthcare Reform in California Cuts Medicare Advantage Plans

A new proposal suggesting cuts of $132 billion instead of $118 billion in Medicare Advantage is on the table. Because of such cuts, many health insurance providers will likely make big changes to what they offer or get out of the program altogether. This will greatly impact California because 34 percent of people there are on Medicare Advantage policies compared to a national average of 22%. Another concern is that there is still the question of care for illegal immigrants of which California has a higher than normal amount. Such individuals will not be able to take advantage of the economy of scale plans in the health insurance exchange marketplace, meaning medical insurance will be more costly for them. They are also ineligible for federal subsidies to help purchase coverage. It even blocks them from buying a policy out right.

Medi-Cal Benefits

Many supporters of this Healthcare Reform in California are happy about the pending changes. It gives doctors in the state more money and covers all costs for new Medi-Cal eligible individuals who receive coverage between now and 2016.

Overall, the new California Health Insurance Reform plan is very beneficial to California as a whole.