The Affordable Care Act (ACA) has brought about a many changes in recent years in terms of health insurance. And as the individual health insurance market went in the end of 2013, many people are starting to get the hang of how it works. In fact, 9.5 million people signed to obtain purchase for them in 2015, but in California, things start complicated for individuals individual health insurance.
Blue Shield of California has farewell Northern California customers to take the decision for individual health insurance of some 250 postal codes and all the counties. This decision has on many people had negative effects and its ability to offer individual health to acquire.
insurance options reduced Anthem Blue Cross for 30,000 people
Entire counties Alpine, Monterey, Sutter, and Yuba, and more than 250 zip codes including are now to a health insurance company, Anthem Blue Shield, limited when buying individual health insurance market by CoveredCA.com, California.
In recent years, both Anthem and Blue Shield of California provider in the area of northern California, but open enrollment until 2014 Blue Shield of California were stopped individual health insurance to sell. But, this happened to other areas as well as California? Not exactly. In fact, it was the opposite.
However, other parts of California as many as six options
areas such as San Francisco have six to seven decisions -. a striking contrast to her only choice of the northern neighbor
, as shown in fact in the picture, it is easy to Blue Shield of California has stopped seeing sales policy of the individuals, in almost the entire northern part of the state. But there must be a reason, and there is: Not enough hospital networks.
What is the relationship between insurance providers and hospitals?
Here how it works. To remain competitive, insurance must Plans have a fairly diverse list of providers and hospitals in their networks. The same applies to doctors and hospitals, which rely on the inclusion often in big plans to keep their doors open.
are to part of a network, a service provider must sign a contract with the health insurance company. The agreement gives the doctors and other providers a steady stream of patients and provides health insurance services at reduced prices. This leads to an affordable health insurance plans.
Because there is a shortage of hospital networks and physicians in the field of northern California and Blue Shield of California will not plans on an offer loss and their plans are no longer around to disposal. But who is really to lose in this situation?
without competition, losing consumer Out
The truth is, without that little-to no competition, individuals in Northern California with a monopoly the individual health insurance faced. The remaining companies, Anthem Blue Cross, has the ability to charge more for their coverage simply because it is not a competition.
But is Anthem Blue Cross is the only option for individuals in the area?
No. In fact, there are two more companies - Assurant Health and Moda Health. However, these two companies are not in the public individual health insurance market. Why is that important? individual health insurance tax credits (premium tax credits).
premium tax credits for qualifying persons individual health insurance through health insurance market of their condition to buy. They are for the majority of people and families who do not receive insurance through work. The tax credit cap cost of the individual at 2% - 9.5% of their household income
So individuals in Northern California are only two possibilities .: Buy a Anthem Blue Cross policy by buying individual health insurance market and to quality tax credit or a policy through Assurant Health and Moda health and lose the ability to use premium tax credits. With such limited opportunities to a large part of the state, it is legal? Surprisingly, yes.
Blue Shield of California is in Law Acting
Blue Shield of California actions under the law. In fact, there is no public charging the company (or a health insurance) say must provide coverage to an entire country. And as said before, Blue Shield of California, she says have pulled coverage from the area due to a limited network with which to operate profitably and operate -. And not while their actions are legal as loss
, are thousands left with limited individual health insurance options of people now.
Conclusion
Although Blue Shield of California is. Anthem Blue Cross
And despite - no longer available to much of Northern California, because a lack of network, more than 30,000 people with a health insurance option by the individual health insurance remain market the fact that other options such as Assurant Health and Moda health are present, they are currently not covered by the individual health insurance marketplace and individuals would not have the opportunity to use their premium tax credits.
What do you think Blue Shield of California should have done in this situation? Believe, Blue Shield of California should not bid farewell to California customers say? Comment below.
An earlier version of this post incorrectly stated the name of a health insurance California. This post has been updated to reflect the correct name of the provider, Blue Shield of California.
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