What ever happened to free market?

During the campaign, over a year of debate, and behind-the-scenes deals to get Obamacare passed, a huge emphasis was placed on growing the number of choices Americans would have for health insurance. Like most campaign tactics and Washington promises, the facts don’t quite live up to the hype behind them.

A recent article in Time Magazine reported that some states may seek to limit choices by only showcasing certain plans in their exchange. New Mexico Governor Bill Richardson recommended that his state establish an exchange that “assumes an active role in driving market reforms and protecting the consumer.” The article goes on to explain: “This could include restricting plans from the Exchange that would exceed specified premium growth levels or by requiring cost containment initiatives of plans participating in the Exchange.”

Now, this may sound great to a politician, but it has no real bearing on real life. As of now, The Health Care Reform Act has NO impact on the cost of health care and only slightly more on most insurance carriers.

Health insurance companies are simply bill payers, but they can have an impact on the cost of health care that is reimbursed under their plans and policies. Contracted doctors and hospitals agree to accept lower pricing in exchange for increased foot traffic (patients) and prompt payment. This can actually hold down pricing which in turn leads to lower health care costs.

Another way to hold down the cost of health care is to monitor treatment plans and to look for more ways to promote the most effective medical practices. This is usually easily accomplished through plan design and benefit outlines.

Health insurance is a very competitive market. There is absolutely no need for governmental control in a free market. Simply put, if an insurance company spends too much on overhead or cost of claims, the result will be higher premiums that will not be competitive. Competition will effectively decrease premiums and increase plan benefits.

When the government boasts of how they are going to protect the consumer by beating up the health insurance companies they are actually exposing their lack of knowledge on the issue and total disregard for the constitution. Mandating loss ratios, limiting premium increases, and requiring certain benefits does nothing to hold down the cost of health care and will only result in higher premiums across the board. It will take the action of responsible, educated citizens to protect the rights of free market. Do your part by contacting your representatives and making your voice heard. Click here for your representatives an senators contact information.

To speak to a Professional Risk Manager now, call 1-800-946-3303 or visit us at www.berlindenys.com To get an immediate health insurance quote, click here.

Matthew Reynolds

Chicago Healthcare Trip - Norvax University

I got back a few days ago from a great trip to Chicago. Norvax University was having one of their two day classes on the health insurance marketplace.

The classes went into great detail on what to expect from healthcare reform and the future of the agent in the post reform world. Many agents are scared about what is going to happen to them in the near future and in 2014. I have to say that agents and agencies that do not change their business models will either barely survive or just fade away.

I would be happy to talk to any agents that want to learn more about what I learned. I can be reached at gerard@berlindenys.com or our website http://www.berlindenys.com/. Check back as more detailed information is added to this blog.

You also need to visit Pizzeria Uno if you visit Chicago. Been there many times and it never gets old. Real Chicago deep dish!

Serving with excellence,

Gerard Denys