The creation of a California health insurance exchange is moving ahead, and many hope that it will not only make coverage more affordable, but also make it easier to understand. Consumers need a lot of information about what policies do and don’t cover.

An exchange is a marketplace where individuals and small business firms can shop and compare different CA health insurance plans online.  Plans will be standardized; every plan sold by insurers will offer the same benefits to make it easier for consumers to shop for health insurance.  Consumers will simply focus on the cost and quality of the health insurance plan when doing comparison shopping.  It’s designed to make it easier than the complicated fine print we now should read, but can’t always understand.

Why Would A California Health Insurance Exchange Be Controversial?

Like almost everything else, state-based exchanges are enmeshed in politics.  In California and other states, lawmakers have agreed to adopt the legislation in setting up exchanges, but many Republican governors are combating the exchanges.  Some governors even refuse to implement any part of the health care reform, such as in Florida.

California, Florida and Texas contribute 40 percent of the 4.3 million uninsured children in the country and lack of health care coverage hurts the adults in these states, as well.  The CA health insurance exchange can give the public a better chance to get affordable California health insurance plans.  However,  some insurance experts forecast that healthy individuals will opt out from the exchanges if they are not well planned.  That would leave insurance providers covering sicker people, which typically drives up CA health insurance plan premiums.

When Will The California Health Insurance Exchange Take Place ?

The new health insurance marketplace is expected to be fully functional on January 1, 2014.  By that date, all states are anticipated to have set up their state-based exchange.  If they fail to do so, the federal government will run an exchange for that state.

How Much Will California Health Insurance Plans Cost?

Since there are four different types of plan offered, premiums will vary depending on the level of benefits and your location.  There will be a choice of bronze, silver, gold and platinum plans, and all plans will include certain safeguards.  For example, insurers will not allowed to charge premiums based on your gender or your health status.  However, insurers may raise premiums based on age.  Seniors could be charged triple the rate for young adults.

The Obama administration has said there will be a set of “essential benefits” in every CA health insurance plan sold through the exchange.  The benefits are still being worked out, but will certainly include coverage for services such as emergency care, prescription drugs, hospital care, lab services, maternity care and pediatric care.