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If an idea created in California catches on, people may soon be able to add parents to their health insurance plans.

While people can have their children on their health insurance plans through age 26, there is no provision to add dependent parents to health insurance plans. That may soon change in the nation’s largest state if a new bill passes. This may have implications for the future of the entire health insurance industry as well.

Health insurance for the vast majority of the elderly who live in America is covered by Medicare or Medicaid. However, there is a small elderly population who generally aren’t covered by these health insurance programs.

The bill, which is currently named AB-570: Dependent Parent Health Coverage Bill (full text of the bill is here), seeks to allow dependent parents to be added to their adult children’s healthcare plans the same way that adult children can be added to their parents’ healthcare plans (until they are 26). This would drastically benefit those who are caring for incapacitated parents, and may help fill in the gaps that Medicare doesn’t cover (Medicare doesn’t cover dental care, eye care, hearing care and more). The bill also allows people to add undocumented parents to their health insurance as well.

Need to fill in Medicare gaps? Check out our guide on Medigap coverage here).

AB-570 comes on the heels of another California bill that has already influenced other states to reevaluate the way health insurance works, and may end up influencing the future of healthcare in the United States as a whole as well.

Los Angeles assemblyman Miguel Santiago, who sponsored AB-570, says that this is more than a healthcare issue; this is a human rights issue:

“(There are people who) can’t give (their parents) a very basic right to health care through their own coverage plan. This is critical. It’s the humane thing to do.”
-Assemblyman Miguel Santiago

Not surprisingly, there has been some solid opposition to this bill, even outside of the political arena. For example, a coalition of several of California’s chambers of commerce released an open letter (see full text here) that says while the bill is “well-intentioned”, it will cast a burden on small businesses that will be too much to bear, especially when considering California’s recent changes to increase corporate taxation. Here are a few sentences from the letter:

“This bill will place an additional strain on struggling businesses for coverage that is already accessible and affordable for those who need it. …for these reasons, and others, we are respectfully OPPOSED to AB 570” (Caps were in original letter).

At the time of the publication of this article, AB 570 is under debate in the California Assembly (the equivalent of the house of representatives in other states). Regardless of the outcome, it will be interesting to see the discussion this bill will create.

Where to Get Health Insurance

Whether shopping for Medigap coverage for senior parents or searching for a health insurance plan for yourself, Health Plan Options Today covers it all, and has a team of experts that can help you find the right plan for your needs and budget. Call our hotline at 855-218-3447 or click the button below to get started!

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In a strange and ironic twist of fate, doctors and hospitals are upset about paying unusually high prices for supplies they use every day.

If you’ve ever been in a hospital and have been charged $5 for an aspirin or $50 for a bandage when paying out of pocket, here’s a news story that may make you chuckle a bit. On the other hand, if you have a good relationship with your local family practitioner or dentist, you may feel a tinge of remorse for them.

According to an article that appeared in the Los Angeles Times this week, doctors and hospitals are upset about unusually high prices for supplies they use every day. Of course, items like masks and gloves are typically inexpensive and are easy to access for medical institutions, but the COVID-19 pandemic has created a high demand and drove prices to previously unthinkable levels.

In an example used in the LA Times story, nitrile gloves (the disposable sterile gloves that medical professionals wear) cost less than $2.50 for a package of 100 pre-2020, but now cost $30 or more for the same size package. Masks and other supplies have undergone similar increases. As you might imagine, this adds up for hospitals and busy doctors’ offices and is cutting into their bottom line. That’s not to mention that doctors are able to see less patients these days because of social distancing and the time it takes for doctors and nurses to constantly disinfect themselves, which is also cutting into their bottom line.

Matchup Of The Year: Doctors vs. Health Insurance Companies

In what may be a historic development, the medical industry says that they don’t want to pass the costs directly to their patients. Instead, they say health insurance companies should pay for the extra costs (of course, this means that eventually these costs will be passed on to insured patients, but nobody is mentioning that).

Doctors in California believe in this idea so much that the California Medical Association, which is a statewide doctor’s organization, has sponsored a bill in the California state legislature that says that insurance companies should not only pay for the now-pricey personal protective equipment (PPE), but other pandemic-related expenses such as soap and other disinfectant, lost time, and even the protective fiberglass that separates office workers from patients.

“People are literally saying ‘well, maybe my knee doesn’t hurt that bad…’ and the insurance companies are turning record profits as a result”

The California Medical Association says that insurance companies have turned record profits throughout the last year, because outside of COVID-related issues, people have simply stayed inside instead of tending to non-life threatening medical issues, especially during the early months of the pandemic. In the meantime, few, if any health insurance companies have lowered their premiums in response, despite the reduced traffic. People are literally saying “well, maybe my knee doesn’t hurt that bad; I’ll take an Ibuprofen” and the insurance companies are turning record profits as a result. Since many of America’s largest insurers are publicly traded on the stock market, their profit information is only a Google search away- in recent quarters, major insurers have enjoyed not just above-average, but record profits.

A similar legal challenge that attempted to make medicaid and medicare foot doctors’ pandemic expenses bill has already failed on the federal level, but California isn’t the only state with active legislation like this. Washington state has already passed a law that creates a standard insurance charge for every medical visit that will help defray pandemic-related expenses. In addition, it’s likely that lobbyists and lawmakers in other states are watching the outcome of the California bill before writing their own pandemic expense bills. Also, the federal government has taken steps to help people some of the out-of-control medical costs at hospitals and doctors offices.

What Are Health Insurance Providers Saying About This?

If you thought that health insurance companies would not be going out quietly, you’re absolutely right. They’ve fiercely opposed these laws, saying that it’s not usually their responsibility to pay for these types of expenses. In addition, they say that many private doctor’s offices have already received federal help for their pandemic-related expenses. And this is true; in California, billions of dollars were dispersed to help doctors and dentists with pandemic-related expenses. Only time will tell about the outcome of this legislative battle.

How to Lower Your Health Insurance Costs

No matter how this law affects California and the rest of the nation, if you’re looking for health insurance that is customized just for you and your family’s unique needs and budget, then look no further than HealthPlanOptionsToday. Our team of certified experts is dedicated to understanding your situation and helping you find the best option available. Click the button below or call our hotline at 855-218-3447 to get started on your health insurance journey.

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