California Health Insurance Information and News

For individuals looking for a low cost health plan which protects you from major medical events such as hospitalization, Blue Shield of California's Vital Shield 2900 may be the plan for you.

Vital Shield 2900, Blue Shield's lowest-priced PPO with monthly rates starting as low as $42, offers not only affordable coverage, but as part of one of California's largest PPO provider networks, makes finding a doctor easy. The plan is limited to basic benefits, so you don't pay for services you don't expect to use, such as maternity care or brand name drug benefits.

The plan, which is available to individuals only, allows for two office visits per calendar year at $40 per visit, before having to pay the annual deductible. After paying a co-payment maximum of $5,900, you are generally covered at 100%. The plan also provides for low co-payments of generic prescription drugs at network pharmacies. Other covered services, subject to the plan deductible unless otherwise noted, include preventative care, outpatient services, emergency health coverage, ambulance services, mental health services, chemical dependency services and home health services.

Vital Shield 2900 could be the right health plan for the someone looking for a low cost, high deductible plan with two doctor visits per year with generic prescription medication.

Click here to get a California health insurance quote for the Blue Shield of California Vital Shield 2900 individual plan.

Blue Cross of California, soon to be renamed “Anthem Blue Cross” has released their small group “focal renewal” information and the rate increases seem pretty high. The focal renewal applies to small businesses in California (2-50 employees) who have had continuous coverage with Anthem Blue Cross since December 1, 2003. The rate increase will impact all Anthem Blue Cross (of California) small groups on their annual renewal after May 1, 2008.

Anthem Blue Cross (of California) says that 40% of renewing small group clients enrolled in the “Employee Elect” portfolio of plans will receive “single digit rate increases” meaning a rate increase of less than 10%.

The rate increases among our groups is a bit different. Clearly, our clients represent only a small subset of the tens of thousands of small businesses impacted by the Anthem Blue Cross focal renewal. Nonetheless, this gives you an indication of the size of the rate increase. Our small group clients fall into the following categories

• About 31 percent of our clients will experience an 8-10% rate increase;
• About 38 percent of our clients will experience a 10-14% rate increase;
• About 19 percent of our clients will experience a 17-19% rate increase; and,
• About 12 percent of our clients will experience a 25% rate increase!!

On WarnerPacific.com, you can find the percentage rate increase for each Anthem Blue Cross (of California) small group health plan in California for the May 1, 2008 focal renewal. To read the chart you need to know that Area 5 and Area 9 is Los Angeles County. Alameda and San Francisco County are Area 3, San Diego County is Area 6, the San Jose / Santa Clarita area is Area 2 and 3, and Sacramento area is Areas 2 and 3.

The small group clients receiving the largest increases are groups which have enrolled in the Lumenos HSA-compatible plans. The Lumenos plans will have a 25 – 32 percent rate increase!! Wow, that is a hugh rate increase.

Lumenos was a new plan that Anthem Blue Cross (of California) first introduced in 2007. They were very well priced plans – apparently too well priced. The most popular Lumenos plans are compatible with Health Savings Accounts (HSA). The Lumenos HSA plans have a $1,500 or $3,000 deductible for an employee only (twice that when an employee enrolls with a dependent.) Once the deductible is satisfied the insurance company generally pays 100 percent of medical charges.

Options to offset the Anthem Blue Cross rate increase include changing to another plan by the same insurance company; changing to a different insurance company; or, changing to a lower benefit plan. The Anthem Blue Cross (of California) HSA compatible $2,400/$4,800 PPO plan may be a good alternative to the Lumenos plans. Please call us, 800-472-7307, if you would like to discuss your alternatives. You can also click here to obtain a California small group health insurance plan quote.

Labels: Blue Cross of California

The California Senate and Assembly have until the end of the legislative session, (September 14, 2007) to pass AB 8 and enact major changes to the private sector health care financing system. Governor Schwarzenegger is working to alter AB 8 before he signs it into law. Their reforms will likely:
• increase the cost of health insurance;
• reduce the number of people insured;
• force private health insurance companies out of the California market; and,
• cost tax payers and employers billions of dollars.

This article and PDF describe the problems with California Assembly Bill 8 (AB8.)

View the article and PDF: California Health Care Reform Legislation: The Problems with Assembly Bill 8 (AB8)

Health insurance companies price their plans such that there is a balance between the amount you pay to the insurance company and the amount you pay when you need medical care.

Selecting a health insurance plan is complicated by the huge number of options available: PPO, HMO, high deductible, low or no deductible, various doctor office visits. Consider weird terms like "out-of-pocket limit," then add in options from different insurance companies (Blue Cross, Health Net, Blue Shield,) with their different provider networks and your head begins to spin.

How can you tell which plan is the best for you. This illustration should help you understand how insurance companies price health insurance policies.

There is a trade off between the monthly price you pay to the insurance company (called "premium") and the amount that you pay when you need medical services (called "benefits.") The more you pay the insurance company the less you pay when you receive medical services.

For more information about health insurance read these articles and / or call us at 800-746-0045

BenefitsCafe.com is proud to announce a brand new tool to help individuals easily compare two different health insurance plans with the Health Insurance Plan Comparison Chart.

With this side-by-side chart, you can follow a three step process to:
1. Calculate the BEST CASE for a health plan;
2. Calculate the WORST CASE financial condition of each plan; then,
3. Select a Plan.

Under the Best Case scenario, you would never get sick and only pay the monthly premium to the health insurance company (e.g., Blue Cross, Blue Shield, Pacificare, Health Net.)

Under the Worst Case scenario, you would pay the monthly premium and also expenses for medical care up to the "out-of-pocket limit."

Selecting an individual health insurance plan is not easy, however, this chart will help you focus on the most important aspects that you should consider.