News / Finance
Health Insurance Reform
“Health insurance broker explains reform can influence premiums”
No precise or reliable measures exist to guarantee how health premiums will be impacted by the health care legislation. This legislation has seen strict opposition from the health insurance industry from day one. The bill requires all people who are presently uninsured to obtain health coverage, which in turn is to be obtained from the private sector. Government funding will be provided to those who are unable to afford the coverage due to economic reasons like unemployment. The funding will assist such people purchase a plan that will fulfill their needs at the basic level.
The National Coalition of Healthcare claims that the percentage of Americans aged under 65 who are uninsured is 27%. Much of this stems from the elevated unemployment rates following the great recession. If half of the aforementioned received coverage, the pool of people who are insured would increase by slightly over 40 million people and health insurance companies would be inclined to lower their rates. However, will market values be practiced? Will the laws of supply and demand be obeyed by insurance firms? These are the burning questions that need answers if the picture is to be clarified. For more information please contact your health insurance broker today!
Insurance companies have been seen to eliminate high risk customers. These are people who have a pre-existing health condition or require costly procedures that are part of the management strategy for the conditions affecting them. These risks turn out to be costly for insurance company bottom lines. The new legislation prohibits companies from doing this. The people who have been denied coverage will have access to high risk insurance pools created for them. By 2014, people applying for health insurance cannot be refused because of having pre-existing conditions, a fact already anticipated by insurance companies who have already raised their rates by approximately 40%.
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One of the elements that could lead to an increase in premiums is the requirement in the health insurance reform legislation that prohibits insurance companies from imposing lifetime limits on policies. They will also be prevented from imposing annual limits on insurance benefits. Insurance companies, according to the legislation, will be allowed to make all rate increments only after they make an announcement first and have the proposed changes approved by the state boards. In the event that insurance firms fail to pay a minimum of 80% of people’s insurance dollar, the insured may reclaim anything above that rate. Get a FREE health quote today by clicking HERE and start saving today!
