One of the most popular searches online is for "affordable" health insurance.  What exactly does that mean and how can you find as an individual, family, or small business.

The exact meaning of "affordable" health insurance is a bit vague as "you get what you pay for" definitely applies to a product such as health insurance, but the sincere need to lower costs is critical in the market now.  Health insurance premiums have skyrocketed since about 1997 with double digits increases each year.  Affordable California health insurance has become "insurance I can actually pay the premium for".  First, let's look at what is driving the cost of coverage.

We have covered what is driving the cost of healthcare in-depth on other pages listed at the bottom of this page.  In a nutshell, increased utilization (higher use of medical services - especially diagnostic services such as MRI's), a major ramp-up in utilization and cost of brand name medications as a result of improving technology and direct-to-consumer marketing, and cost-shifting due to people using healthcare with no insurance.  Due to these effects, we have seen a 3-4 fold increase in premium with corresponding reduction in benefits.  The "affordable" rally call is simply a collective call of "Uncle!!" to this never-ending cycle of increasing costs.

What will happen going forward??  Probably more of the same but at a slower rate of increase.  The California health carriers have adjusted plan designs (such as brand name deductibles) to mitigate these changes.  The government might offer some assistance but the bold plans and proposals are mainly for political posturing as officials know quite well that the State and Federal government is unable to afford the health services it currently has (Medicare and Medicaid to begin with).  Health insurance is too important not to have so California individuals and small companies need to evaluate their options and try best to choose "Affordable" health insurance.  What exactly is that?

First, it's all relative.  The affordable health plans are only such compared to the other plans on the market.  They are much more expensive than the plans of five or eight years ago so we need to keep that in mind.  These are the key items to look at in order to find affordable insurance:

PPO versus HMO health plans in California

PPO plans are the future of health care as HMO's have become extremely expensive.  It's hard to justify an HMO plan unless a person absolutely wants low out-of-pocket expenses when sick or hurt...even at the expense of his/her monthly premium being much higher.  The new no-deductible PPO plans such as the Right Plan 40 by Blue Cross are priced very well as long as maternity is not needed.  This only holds true if you are younger.  The premium difference between these plans and HSA high-deductible plans starts to erode their affordability as you get older.

Health carrier selection

Some carriers offer certain plans that are good values for a given age band and area.  Ultimately, you want to pick the strongest carrier which is Blue Cross followed by Blue Shield or Health Net in California.  Keep in mind that a plan that looks too good to be true probably is.  Some carriers will roll out plans which under price the market and they inevitably go up later.  If you are healthy, you can always switch but if your health changes, you could be stuck. 

Comprehensive versus Hospital only plans

Try to go with the lowest cost, comprehensive plan.  You do not want to be on the hook for a $20K bill because you find your plan does not cover something (usual targets are brand prescriptions and diagnostic services).  The HSA's or Health Savings Accounts are usually the best way to get comprehensive coverage although some do not cover maternity.

With these three "filters", you should be able to narrow the field to a handful of affordable health plans among which, one will fit your needs.

Other important concepts to help you understand your California health insurance quote are:

Individual health insurance underwriting
Small Group RAFF rates
The concept of health insurance
A quick introduction to California health insurance history
Understanding health insurance costs


To run your instant health insurance:

California Individual Family health insurance quote
California group health insurance quote