California Health Insurance Options

California has many different health insurance options -- like many states. Here's how you can find out more about the types of California health insurance available.

There's one reason to have health insurance and that's because an illness or injury could financially devastate you and your family. However, you may be shopping for individual or family health insurance because you are self-employed or it's not available through your employer.

In California there are different types of plans, and since costs and coverages can vary quite a bit you want to do some comparison shopping to make sure you get the right policy for your situation. These different types of plans generally come in two categories: Fee-for-service and managed care.

With a fee-for-service policy -- also called an indemnity policy -- you pay a premium, a deductible and coinsurance and can usually choose the doctor, clinic or other provider you want. That freedom of choice is the big appeal of an indemnity policy, and these policies are regulated by the Californian Department of Insurance.

If you are familiar with an HMO or PPO, you are familiar with a managed care plan. A PPO policy provides a monetary incentive to use the doctors, hospitals, and other providers in their preferred network. You will pay more if you go outside the network.

An HMO policy requires you to use the healthcare providers in their network unless it's an emergency. You have a primary care physician who directs your care and coordinates referrals with specialists.

When you start shopping for health insurance, get at least three different quotes and compare costs, coverages and other services. Not all policies will be identical; you want the policy that will provide the protection you need at the right price. It's easy in California to get multiple quotes online -- especially at an insurance comparison Web site. You can enter your information once, and get multiple quotes back. Before you take out a policy, read it carefully and don't hesitate to ask questions.