SECTIONS 12700 - California Statutes

INSURANCE CODE

SECTION 12700

12700. The Legislature finds and declares all of the following:
(a) That many Californians, do not have employer-sponsored group
health coverage and are unable to secure adequate health coverage for
themselves and their dependents because of preexisting medical
conditions, and a number of employer sponsored groups have difficulty
obtaining or maintaining their health coverage because some members
of the group either have or are viewed as being at risk for having
high medical costs.
(b) That, even where uninsured persons with preexisting conditions
are able to secure coverage, the cost of coverage is prohibitively
high or is secured only by waiving coverage for the preexisting
conditions for which they are most likely to need care.
(c) 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.
(d) That, left to face the cost of major medical care without
health coverage, all but the extremely affluent uninsured persons
must ultimately look to publicly funded programs including Medi-Cal
or MISP in the event of severe illness or injury.
(e) 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.
(f) 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.