California Health Insurance Prices Rise for High Risk Individuals
Beginning in June, health insurance in California and health insurance Illinois will be extended to cover individuals who have no coverage, because of preexisting conditions. The Health Care Reform bill that was passed in March will create an insurance pool for people in the high risk bracket. These people may have a condition such as heart disease, asthma, or even diabetes. In years past insurance companies could exclude coverage for these individuals or charge premiums that were not affordable for lower income people.
Current Health Insurance in California
California has had a high risk pool in place for several years. However, the number of people this pool helped is expected to increase drastically thanks to federal funding. In a letter from governor Schwarzenegger to the Secretary of Health and Human Services, the governor expresses excitement about the possibilities of the program. According to the letter, dated April 29, 2010, there are currently over 8 million uninsured individuals in the state of California. While not all of these individuals are without coverage due to preexisting conditions, many of them are.
The Lasting Effects for Health Insurance in California
The pool that will emerge in June 2010 is a temporary fix to the insurance dilemma. However, this patch in the health insurance gap will allow policy makers time to make long term changes. According to the Health Care Reform bill all insurance companies will have to lift the preexisting clause by 2014. Therefore, state and federal governments will no longer have to fund insurance for this pool. All individuals will have the opportunity to buy coverage at affordable rates.