Health Reform Eliminates Health Care Options For Ct Youth-shdoclc.dll

UnCategorized The September health care reform mandates will decrease the medical insurance alternatives available for youth. Across the United States, many private health insurance carriers appear to have decided not to insure youth who purchase standalone policies after September 22nd. Not all carriers have announced their decision on this issue, but many that have are choosing eliminate these types of policies. Youth who apply for medical insurance with at one or both parents will not be affected. children 18 and under who are covered by standalone policies that were effective prior to the mandate will be allowed to keep their existing policies. Who is the villain here? We can fault the insurance companies. However, mandating that an insurance company to insure unhealthy people is like asking banks to underwrite loans for people who have unstable incomes. Our lawmakers may more at fault than the insurance companies. Insurance companies do make tons of money but their margins are not very fat. They don’t make a lot of money on per policy. Adding just a few additional significantly costly people can make them unprofitable or make their premiums unaffordable. A basic example might involve an insurance company that insures one hundred people against major health problems only. Each person pays a thousand and twenty dollars a year. Like clockwork one of the policy holders has a myocardial infarction annually. It costs the carrier $100,000. The company pays the hospital and doctors bills . It earns $2,000.. After a new law goes into effect, they must insure five unhealthy people. Every year one of these five new people has a myocardial infarction that costs an additional $100,000. This means that the insurance carrier doubled its liabilities, but not its income. If the insurance carrier responded by doubling the premiums of the policies, their policyholders might respond too. Some might drop out. Chances are the healthier people would be much more likely to decide to take the risks that come with being uninsured. Then their premiums would have to go up again and again as their ratio of healthy to unhealthy policyholders would keep moving in the wrong direction. When an insurance carrier is mandated to accept people without regard to their medical history, they run the risk of closing their doors. This might sound ludicrous to you, but big institutions go out of business from time to time. Perhaps if the United States automobile companies had been more fiscally responsible, they wouldn’t have needed the taxpayers to bail them out. Perhaps banks should have been more prudent a few years ago and not underwritten so many soon-to-be bad loans. A law of congress cannot change the laws of the marketplace. If an insurance company takes on unprofitable business it will have to raise its prices. If they are forced to raise their rates more than their competitors, they will wind up with fewer customers. Congress wrote a law that was designed to provide universal medical coverage to youth. This law has had not given us what they intended. Fewer options for insurance are now available for children. This has to make those of us who are paying attention wonder if the other health care reform mandates are as poorly thought out. Our senators and congressmen spent a lot of time demonizing the insurance carriers. They are no more or less evil than companies in any type of business. They spent a lot of time telling us how much money they make in the aggregate. The real issue is the amount they make per insured person. We’ve gotten artful rhetoric and at least one bad mandate. Let’s hope that this was the only one bad mandate. Do you think that is possible? About the Author: 相关的主题文章: