Health Insurance 101

The problem started when hospitals became big business, coupled with tie-up’s with more and more drug firms who give finances and equipment for research and development of new products, hospitals have become a very expensive business indeed. When the economy went on the rocks, these high-tech hospitals and all their expensive equipment had to do something or risk losing their edge over the next-door hospital so they raised prices. Prices that were so high, only a few could afford them. Even Medicaid was now being denied access to some of the most advanced and effective treatment centers in the whole US. They don’t support them due to the very expensive prices they charge so people seeking specialist care are left to pay out of their own pockets without insurance coverage.

There has been talk of an online program that would list the services and prices of the different hospitals nationwide for better competition in the area of pricing but many experts question the benefit if there will be any for such a move. The medical industry has indeed benefited a lot from the many technological that have revolutionized their ability to give and administer care, online consultations, diagnosis and even treatment have all been made possible by technology and the internet. To make pricing and services listings possible would only complicate matters worse and prevent the proper development of patient hospital/doctor relationships such as with local communities an their local hospitals and staff. This allows better care for people get to know better their doctors. Posting them online would not only get them hunting for the best bargains but have them go to cheaper places out of state which could severely affect local businesses with lower patient numbers forcing them out of business further creating a void in the health care system that is already in disarray.

The questions industry leaders are asking has to do with the lack of comparison data or tangible studies which conclude the proposal as a viable one the federal government can handle. The Federal Reserve has already buffered the economy several times to avoid sending it into a spin that can affirm that recession is indeed in effect within the US. Politicians and public citizens alike would like to see results from studies that would confirm these proposals (which she has been making since they started campaigning) and which she has used as her main platform for the election process. Whether she wins or not, some opt not to hear anything about the matter, yet some wish these politicians can place their money where their mouths are.

Presidential hopeful Hillary Clinton, proposes to set caps on the prices of premiums to enable more people to afford health care. This is raising questions and eyebrows with the current financial crisis in the US that has gas prices soaring, and people unable to pay for their mortgages. She proposes a cap of around 10 % of their income which has insurance industry experts worried for it would leave them vulnerable to the fluctuations in the financial markets. Major insurance firms have already started cancelling and informing clients of non-renewal of policies for homes and the move can affect the life insurance industry as well.

If improvement was minimal, it was still accessible compared to the number of Americans who cannot afford health care. This is a very nice success story for legislation that made a difference, pissing people off at first yet silencing their cries with better services and benefits. Tough legislation shows the resolve of public officials to maintain the competitiveness and authority of their offices who are left to decide for the general public. Many of their constituents even cried foul and vowed to send complaints and counter any moves that seeks support for the increased costs of health insurance but in the end, all parties involved got what they wanted

In the UK that is, where the health care system has received a re-make ahead of the financial crisis caused by the US sub-prime lending market. These reforms were abhorred by some and even hated by others when they were put in place but we continued on. Today, the extra money people had to pay for their health insurance has impacted for the better the health care system and even the School Department which had a budget deficit of around $6 million last year. Property taxes were spared much to the relief of homeowners and people are getting better healthcare options that before.

The crisis that exists in the financial market is being felt all over the world with markets tumbling and insurance costs rising to unprecedented heights. This has left most Americans without health insurance simply because they cannot afford it and worse, even they do not qualify for government funded healthcare insurance programs due to excessive financial burdens. There are currently 47 million people, 9 million of whom are children, do not have health insurance leaving them vulnerable when medical emergencies do strike. The problem is so extreme with Hispanics and African Americans who work in low paying jobs that barely gives them enough to survive. These people who float in between the free care criteria and the ability to purchase private insurance are left hanging, literally, without the necessary financial buffering given by health insurance.

Insurance firms have agreed and admitted that there is a grave need for the review of rescission procedures in the Insurance industry. The voiding of a contract due to non-compliance with the provisions should be done fair and square and possibly with the help of a third party who is impartial to both the insured and insurer. Insurance firms agree that there is indeed a problem with the resolution phase often ending in lawsuits against them that could have been avoided if a third party coupled with stiffer laws and enforcement of those laws were available. This assures insured people that their insurance firm does not abandon them or cancels their contract in the middle of a crisis where insurance is needed most.