Several state-sponsored insurance programs exist in California.
Health, homeowner and auto insurance affect nearly everyone in California, but, for some people, traditional insurance coverage is impossible to obtain. The state has several government-sponsored insurance programs that provide these types of coverage for those unable to qualify on the private market. Each program is subject to restrictions, limitations and eligibility requirements set by the state.
California Low Cost Automobile Insurance Program
All California drivers must be insured, but some cannot afford insurance from the private market. For these drivers, California's Low Cost Automobile Insurance Program provides less expensive, liability-only policies. Drivers must be at least 19 years old, have been continuously licensed for three consecutive years, meet the state's good driver qualifications, drive a vehicle valued at less than $20,000 and meet certain income requirements that vary according to the number of people in their homes. These policies have minimum benefits of $10,000 bodily injury liability per person with $20,000 aggregate and $3,000 property damage liability. Additional benefits are available at an increased cost.
California FAIR Plan
Homeowners who are unable to insure their homes for a variety of reasons, including being in a high-crime or brush fire area, may apply for coverage through the California Fair Access to Insurance Requirements (FAIR) Plan. The FAIR Plan offers basic fire insurance on dwellings and contents, but does not cover other perils such as burglary or liability losses. Any homeowner in the state is eligible after being rejected for coverage by three private insurance companies.
Medi-Cal
Medi-Cal is a state-run medical insurance program available to people in various stages of life. For example, California residents are eligible for this program if they are under 21 years of age, 65 or older, disabled, blind, pregnant or enrolled in a variety of other state programs, such as refugee assistance. Income restrictions apply according to size of household. Medi-Cal is offered through the California Department of Health Care Services.
California Healthy Families Program
The Healthy Families program is a low-cost insurance program that provides health, dental and vision coverage to children and teens. Children are eligible for the program if they are 18 years old or younger, meet citizenship or immigration requirements set by the state, are ineligible for free Medi-Cal coverage, live in families without employer-sponsored insurance for three or more months and meet certain income requirements.
California Major Risk Medical Insurance Program
Sometimes the people who need health insurance the most are the ones who cannot obtain it. The California Major Risk Medical Insurance Program was created to provide insurance coverage to high-risk individuals who cannot obtain health coverage in the private insurance market due to pre-existing and other high-risk health conditions. This program is only open to California residents who are not eligible for both Medicare parts A and B. In addition, applicants cannot be eligible for COBRA benefits and must provide evidence that a private insurer denied them coverage within the last 12 months.
Tags: FAIR Plan, Insurance Program, Automobile Insurance, Automobile Insurance Program, California Cost
