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
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Great post Matt. People are starting to understand that the Obamacare reform was only a power grab attempt by the left. The more people that they can make dependent on them equals more power for there side.
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