The California Health Insurance Program refers to health insurance plans designed by the public as well private health insurance companies for the common benefit of the ordinary citizens of California. There are many public funded health insurance programs launched by both the state government of California as well as the US Federal government. These programs include the short term Temporary Health Insurance Plan and the COBRA. Let us understand how these plans work.
Temporary health insurance provides an individual with a temporary coverage for a period of six months. Once this period is over an individual has to choose another health insurance plan. Since temporary health insurance plans are of a preventive nature, you do not have any procedural issues. This plan is an indemnity plan that offers basic risk coverage at a very nominal price.
Another option which you have is the COBRA which refers to Consolidated Omnibus Budget Reconciliation Act. As per the provisions of this act an employee can remain under his previous employer’s group health insurance plan for a maximum period of eighteen months from the date of the employee’s resignation from the company. The other advantage with this plan is that those who are eligible under this plan have to pay only thirty five percent of the money to the insurance companies while the rest is collected by them from the government by way of tax credits.
Apart from the above plans, the California Health Insurance Program comprises of State Risk Pools, PPO, HMO, Group Health Insurance and other related programs for the benefit of the employees.