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The California Major Risk Medical Insurance Program refers to a program which provides health insurance to those who cannot receive health insurance readily because of their medical conditions. California major risk medical insurance program is created under the Health and Welfare Agency. The program is managed by the Major Risk Medical Insurance Board and is only applicable to the resident of California.
The following is an example of the state statute describing the findings of the state legislature :< /p>
Cal Ins Code § 12700 states that the legislature finds and declares all of the following:
1. That adverse selection precludes private health plans regulated by the State of California from enrolling medically uninsurable persons in the face of the escalating health care costs, and a highly competitive market.
2. That a prudent means of making major medical coverage available to individuals presently unable to purchase it, is to subsidize their purchase of private health coverage from participating health plans.
3. That a prudent means of making major medical coverage available to groups presently unable to purchase or having difficulty maintaining major medical coverage is to facilitate purchase of private health coverage from participating health plans.