Health insurance plays a very vital role in ones life. Just like life insurance, health insurance too can prove to be very helpful for you in troubled times. Imagine a situation, where you have a massive heart attack and you are admitted to a hospital. The doctor suggests an open heart surgery, or a pace maker. Such medical solutions would involve a huge amount of money; and are enough to make a hole in your pocket, unless you have some kind of insurance to deal with such a situation.

Some people might say” I lead a healthy life and so, I do not have any chances of falling ill.” Agreed; but what about accidents? We can not predict accidents. Can we? Therefore, in order to avoid financial burden, due to unforeseen health hazards, one must get a health insurance.

If you are a resident of California, then you have a number of options, as far as health insurance is concerned. These health insurance plans can be broadly offered by two sources: health insurance providers and employers/ employers union.

The following are the health insurance plans provided by employers:

1. The first plan under this category is the Self-Insured Health plan. This plan is usually offered by large organizations, where there is a large sum of money set aside for the payment of medical expenses of the policy holder/employee. These plans are mainly regulated by the Employee Retirement Income Security Act (ERISA).
2. The next in line in this category is the Multiple Employer Welfare Arrangement plan. Under this, employers who are members of associations like that of industry or trade, create accounts which make payments for the medical expenses. Such plans are regulated by the California Department of Insurance (CDI).

Apart from these, the following are the plans which are offered by health insurance providers:

1. The first in this category is the Indemnity Policy. Such a policy, would usually offer you the freedom of choosing the physician or medical care facility, which you want to have. Such plans are regulated by the CDI.
2. The second kind of health insurance in California, under this category, is the Preferred Provider Organization (PPO). Under this plan, although you are allowed to visit a doctor or health care facility, which is not covered under the PPO network; but your out-of-pocket expenses, would be more, than what it would have been in case of PPO network. These health insurance plans are regulated by either the CDI or the Department of Managed Health Care (DMHC).
3. The third in this category is that of Health Maintenance Organization (HMO). In this, you are required to choose a doctor or medical care
4. facility, which is covered in the HMO. Such health insurance plans are regulated by the DMHC.

Health Insurance is very necessary, to provide succor, in case you are faced with unforeseen medical hazards. It would therefore, be a wise decision on your part, to opt for a health insurance plan.

Tags: health insurance in california, health insurance plans, plans that offered by insurance providers