Part A is referred to as hospital insurance. It is generally paid for through the social security tax and provides inpatient and other hospital services, as well as nursing home expenses. Automatic enrollment in part A occurs when you turn 65 whether you are retired or continue working. Part A still requires you to pay co-pays and deductibles.

Part B is medical insurance and is paid for by a monthly premium similar to traditional, private medical healthcare coverage. It helps pay for doctors’ visits, outpatient hospital visits for lab tests, and other medical services that are not covered by Part A. Similar to private insurance, you can choose form an HMP or PPO plan.

Part C of Medicare is referred to Medicare Advantage. You must be enrolled in both part A and part B in order to qualify for part C. This plan permits you to choose to receive all of your health care services through a private organization.

Lastly, part D is prescription drug coverage. This part of the Medicare package is voluntary and also paid for with a monthly premium. Medicare recipients are automatically enrolled in part D and must request to be removed from the program.

2010 Changes in Young Adult California Health Insurance

As of September 2010 young adults under the age of 26 can begin or continue coverage with their parent’s. There is no requirement for the child to remain in school and there is no income cap for families under this plan. However, there is on restriction for coverage. If your adult child is covered by an individual by a California health insurance policy of their own, they cannot cancel this coverage to rejoin a parent’s plan. However, if the child does not have coverage they are welcome to stay with their parent’s coverage until the age of 26.

Additional Changes Available in 2014

In 2014 there will be no restrictions to parental coverage. At this point young adults can choose whether to join their parent’s insurance plan or to take advantage of an individual plan. Children will even have the option to drop parental coverage for a short period and then rejoin the program during open enrollment. These changes will provide coverage for thousands of uninsured young adults in California.

Raise Your California Health Plan Copayments

If you and your family go to the doctor rarely you may find that raising your copayment could save you a lot of money. Raising your copayment will often lower the amount of your annual premium. However, you need to determine whether the amount you will save on your premium is more than what you will pay in copayments each year.

Raise Your Deductible to Lower Your Premium

Another option to save on your premium is to raise the amount of your deductible. Your deductible is the amount you are required to pay before your insurance kicks in. This deductible can range from 2,00 to 5,000 dollars in most cases. Before you raise your deductible you need to determine whether you can pay this amount out of pocket in the event of an emergency.

Lower Your Coverage or Eliminate Services

The final option for lowering your premium is to eliminate coverage. For example, if your children are all grown you probably do not need prenatal benefits. In this case, you could go to an independent insurance company and have a policy customized specifically for you.

What is the Definition of a Small Business?

In order to receive the small business tax credit your company must employ less than 25 full time workers. This number can be an average of all of your employees. For example, if you have twenty five full time employees you are paying for 25 workers at 40 hours per week. This equals a total of 1,000 hours each week. You could hire more employees at part time and still receive the credit. However, you cannot use more hours than you would to employ 25 full time workers. You are also required to pay at least half of each employee’s California health insurance premium in order to qualify.

How Much Will My Tax Credit Be for Offering California Health Insurance?

Businesses that employ less than ten workers, with an average annual wage of less than twenty five thousand will qualify for a 35% tax break. Non-profit organizations with the same employees can get a 25% tax credit. As the number of employees goes up to 25, and the average wage increases to $50,000 your business can receive a tax break according to a sliding scale. However, in 2014 the maximum tax credit available for small businesses will increase to 50%. The amount available for nonprofit organizations will increase to 35%.

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.

Consumers with Major Illness or Injury

Current health insurance in California has limits that can cripple a consumer who is injured or ill. When you consider the cost of a major hospital stay or procedure you could end up paying a great deal for your treatment. In fact, some hospitals implement annual limits of 500,000 dollars. That cap may even cover your entire family. If two people in your family require surgery and a short hospital stay you are likely to go way over that limit.

Preventative Coverage with No Deductibles

In addition to saving money by avoiding coverage limits you will also save money by enjoying complete coverage for preventative services. You will no longer have to pay a copayment and deductible fees when you go for preventative services. Vaccinations for children, annual checkups, and well-baby visits will be completely covered. For a family of four this could lead to hundreds of dollars in savings each year. Medicare, which is health insurance in California for seniors, will also cover preventative services at no additional cost.

With these changes, the health care reform act may save your family a great deal each year.

1. Insurance Companies are now required to cover preventative medical care.
2. Lifetime and Annual limits will no longer be allowed in any health insurance policy.
3. Children will now have the opportunity to remain covered on their parent’s policy until age 26.
4. California Medical Insurance Companies will no longer have the option to rescind coverage. (unless the company can prove fraud was committed by the consumer)
5. A one-time, $250 benefit will be released to seniors who have suffered from the lack of prescription coverage by Medicare.
6. Small business owners will now enjoy tax relief when offering medical insurance to workers.
7. Consumers will now have the right to appeal insurance company’s decisions.
8. Consumers who pay high premiums will have the right to a rebate if the company does not have a high overhead cost as predicted.
9. Insurance companies will no longer exclude consumers from coverage due to preexisting conditions.
10. A high risk pool will develop by June of 2010 to provide coverage for consumers excluded from coverage because of high risk.

Many of these benefits will take place by the end of June 2010. However, some changes to California medical insurance policies will not begin until the year 2014. This delay will allow companies to prepare for the changes and understand each requirement.

Public Sharing of Information

Each insurance company will report the amount of money earned and spent online. Consumers will have the right to review these numbers at their own discretion. Insurance companies will report earnings on a regular basis.  If a company wants to raise rates across the board, for all consumers, this news will also be posted online for consumers. Rate increases must be justified in order to take effect.

Appeals Process Changes

California medical insurance companies will also change the way appeals are handled. Consumers will have the right to appeal a decision that was made about their coverage. If the individual feels that the insurance company did not pay enough or that coverage was denied without just cause, the appeals process will be available.

All of these changes will allow consumers to better understand their policy. Most insurance companies have stated that they look forward to these changes. After all, consumers are more likely to stay with a company that they trust and understand.

 Reform for Insurance Denials

The new health reform will have a benefit for those with pre-existing conditions. According to this law California health insurance companies will no longer be able to deny coverage based on an existing condition. Coverage will become available for those with and without conditions. In addition, insurance premiums are expected to raise no more than 11% for consumers.

Timeline for California Health Insurance Reform

According to the new health reform California health insurance companies will no longer have the option to exclude adults with pre-existing conditions in 2014. However, children who suffer from a pre-existing will receive coverage in as little as six months from the date the bill was signed. This means that the 576,500 children who suffer with a medical condition may receive coverage by the end of 2010.

What is a Pre-existing Condition?

California health insurance companies define any major health condition that occurs before coverage begins as pre-existing. This condition could be cancer, heart disease, or even hay fever. Each state has different laws regarding what conditions are included. However, once these new laws take effect no one will be denied coverage due to health issues.

California Health Plan Changes for Children

In September of 2010 a drastic change will occur for children’s health insurance. As outlined in the reform act children will now have the opportunity to stay on their parent’s insurance plan until the age of 26. This will apply to all children no matter what their economic or school status is. In fact, your married children can even enjoy coverage under your plan. The only exception to the rule would be children who are entitled to their own insurance through an employer. However, in 2014 children may stay on their parent’s plan even if they have their own coverage. As of September, this policy will cover anyone young adult who is now under the age of 26.

Changes for Small Business

The reform act created a new provision for small businesses in California. According to this provision small businesses can now receive a tax credit for offering California and georgia health plans to their workers. This provision will back date to January 1^st of 2010. According to the rule small business owners can receive a tax credit up to 35% for offering and paying 50% of an employee health plan. In addition, the percentage will increase to 50% in 2014.