by California has set some interesting health care precedents in recent days. Governor Arnold Schwarzenegger just signed legislation that created the nation’s first health care exchange. This new legislation provides a “virtual” marketplace that offers health insurance coverage to consumers.The way that it will work is as follows. Both small businesses and individuals will have access to the online exchange. There will be five categories from which consumers can purchase policies and consumers will also be able to compare the policies based on their personal needs. The exchange will also have explanations of eligibility information on federal subsidies that can help to cover insurance costs. Consumers will not have access to the coverage from the exchange until 2014 because of intricate federal legislation. Health Care experts expect California to become the model program for other states for implementation.The legislation actually consists of two bills AB1602 by Assembly Speaker John Perez, a democrat from Los Angeles, and by Senator Elaine Alquist, a democrat from Santa Clara. Together, the bills create the framework for the California Health Benefit Exchange.
