The California Health Insurance Exchange is going forward which begs the question what should california consumers expect from this new exchange. We would like to give a brief overview of the immediate future of the exchange although expect many changes over the next few years from participating companies to types of plans offered.
First, the exchange as we understand will offer about 4 different packages ranging from high end and medium plans to the low end packages. Ideally there will be california health insurance carriers who will be bidding against each other for consumers drawn to the health insurance exchange. We are currently under the impression that these policies purchased through the exchange will be eligible for subsidies given on your end of the year tax return.
Please be aware that these subsidies are not significant and you can visit the Kaiser Foundation for further approximate tax subsidy amounts of contact us and we can give you an approximate reimbursement amount based on your annual income. Consumers should prepare that moderate to high income levels will receive very
little subsidy which may not offset getting a high end medical insurance plan compared to a high deductible lower
cost plan offered outside the health exchange.
Finally, consumers should expect that rates may actually increase dramatically through the exchange since many people with pre-existing conditions and low income households may be drawn to the subsidies and the comprehensive california health insurance plans. If adverse selection occurs then companies may want to drop out of the exchange or rates may be bid up.
Our site will advise consumers on every aspect of the new state health exchange and will provide links to every part of the exchange. We will create an online environment so every option is presented to our visitors.
So many questions remain regarding the future of the health insurance exchange. Please stay tuned for additional information by clicking on one of the links or contact us with any questions by calling us toll free at 888-504-6171.
