Essential Checklist for Buying California Health Insurance

Jan. 17, 2012 - PRLog -- eCAHealthinsurance has taken the questions they hear most frequently from Californians shopping for health insurance and combined that with the most costly mistakes people make when selecting a plan.  The result is an essential checklist of questions that can make buying California health insurance less confusing and less expensive.  

According to Wiley Long, the president of eCAHealthinsurance, “Many shoppers start by looking at California health insurance policies and subsequently try to fit their needs to the policies they find.”  Most people don’t realize that health plans basically come in three forms:  co-pay plans, high-deductible plans and health savings account plans.  Long says, “The most popular plan may not be the best value for everyone because health care needs differ.”  To determine the type of health plan that fits individual needs, answer basic questions before shopping for insurance, such as:

1.   What type of health care was needed over the past year?

After health care reform, there’s a big difference between coverage for preventive health care and services that deal with medical intervention for advanced disease.  Preventive care is covered at the 100-percent level through the plan’s provider network, but intervention services are subject to co-insurance and co-pay charges that drive up policyholders’ out-of-pocket costs.  Most of these services are not covered unless the policyholder spends an amount equal to the plan’s deductible.

Considering what type of care is likely to be needed can point out what kind of policy will give the best return on investment.  For example, if only the need for preventive services is likely, low-cost plans with high deductibles do cover that.

2.   Can coverage for dependents be found with a less expensive individual health insurance plan that offers the same benefits as a group plan at work?

According to the Commonwealth Fund, the average annual cost of employer-based family premiums in California jumped by 52 percent between 2003 and 2010.  During the same period, the average annual deductible rose 78 percent to almost $2,000 so employees paid higher premiums for lower amounts of coverage.  

By 2010, the average cost of family premiums was equal to one-fifth of the median income for those under age 65.  At that time, individual (as opposed to group) California policy premiums were running below the national average.  

Before the end of 2010, individual coverage was required to match the guaranteed acceptance that group coverage offered to children under age 19.  Individual plans can no longer decline applications to cover children who have health problems, but they can charge premiums up to twice the standard rate.

3.   Can the cost of coverage be offset by reductions in income taxes through health savings account plans?

Plans that are described as a "Qualifying High Deductible Health Plan" or an "IRC Section 223" plan, which have at least a $1,200 deductible for individuals or a $2,400 deductible for families, offer a tax deduction for saving.  

With an insurance plan that’s qualified to be combined with a health savings account, individuals may deposit up to $3,100 and families may deposit up to $6,250 and take an equivalent income tax deduction without itemizing.  

Giving Californians the insight they need to match health insurance to their coverage needs and budget is eCAHealthinsurance’s specialty.  From alternative sources of coverage to related tax savings, Californians may be able to bring down the cost of their health insurance with eCAHealthinsurance’s educational resources.  Additional information is available at www.eCAHealthinsurance.com/how-to-guide.htm.

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About eCAHealthinsurance:

As an independent broker, eCAHealthinsurance has become a leader in providing strategies to enable Californian families, individuals and small businesses to reduce their cost for health care and insurance coverage.

Californians may use eCAHealthinsurance’s online resources by visiting www.eCAHealthinsurance.com/ to compare coverage options. Instant quotes with side-by-side comparisons of coverage options from multiple insurance companies help consumers get quick results.

Californian families, individuals and small businesses may also schedule consultations with eCAHealthinsurance expert advisors to compare options by calling 1-866-585-7662 from 6 AM through 8 PM Pacific.