| California is one of the largest health insurance | | | | market. HMO organizations manage to have such |
| markets in the United States as many companies | | | | low premiums as they intervene in the health care |
| offer medical insurance plans in the state. In order | | | | delivery process as well. In some cases, for |
| to offer insurance in the state, a company must | | | | instance where carriers run their own delivery |
| have a license from the state of California. This is | | | | centers in California, as Kaiser does, it becomes |
| a highly regulated process in order to ensure that | | | | quite possible to offer such inexpensive |
| insurance carriers have substantial assets and the | | | | rates.Medical insurance has multiple components |
| necessary infrastructure to offer health insurance. | | | | and can be underwritten by specialized providers. |
| General insurance companies like Aetna, New | | | | Dental and vision insurance plans are some |
| York Life, Prudential charge higher premiums. | | | | examples of this specialized underwriting. The |
| These general carriers do not have any | | | | terms of these plans vary widely as do their |
| specialized delivery mechanisms and usually third | | | | underwriting guidelines. Therefore, consumers |
| parties administer their plans. Specialized insurance | | | | have to be careful about the kind of plan they |
| giants like Blue Cross and Blue Shield are able to | | | | choose. There are also specialized carriers offering |
| keep costs down with local delivery infrastructure | | | | packages that specifically cover disability.For those |
| and therefore offer lower premiums to the | | | | who cannot afford health coverage but are eligible |
| consumers. Health Maintenance Organizations | | | | for medical aid, the State of California provides a |
| (HMO) such as Kaiser and HealthNet maintain | | | | state government driven program. The state of |
| premiums even lower than the specialists and | | | | California runs its own facilities to deliver medical |
| therefore, have developed a giant share of the | | | | benefits to medical recipients. |