Health Insurance 101

The health insurance industry through its leaders, have begun to do studies and formulate ways by which individuals can easily obtain health insurance. Everybody knows that the current financial crunch in the US has people scrambling for all they can with their meager incomes. The problem, even middle class citizens cannot afford health insurance which makes it more difficult for them due to excessively high health costs. Without health insurance, many people are helpless against the ravages of disease and illnesses. The industry itself has initiated a move to make it easier, cheaper and even give access for those who have pre-existing conditions that used to have been denied coverage altogether.

Coverage denials are rising as are the costs of health care and premiums and the leaders of the industry are trying to do their best with adjusting to reforms in policy from the government that would make them more accessible and affordable. The denial of claims (which has undoubtedly resulted in several lawsuits) is making it more and harder for the industry and consumer to work hand in hand due to raging emotions and the troubled economy. The moves would be the banning of rescission (with pre-set rules of course) for specific cases which are the victims of the economic turmoil.

Many Americans are going to be getting help with respect to health insurance form the state and federal government in a move to lessen the gap of uncovered individuals. As per last estimates, millions of people (children and adults alike) are having to go day by day without health insurance which is complicated more by the influx of jobless people. Jobs are being shed like over-ripe apples from a tree during harvest that the government has its hands full just trying to cope. Many state sponsored drives have been almost unfelt due to lack of funds and the federal government has yet to react or release funds pending the taking oath of President Elect Obama.
Obama has made health care a primary battle cry during his campaign and with good reason, more and more people are losing jobs each day. Along with their job loss, goes their health care benefits and employer sponsored insurance contributions which they cannot pay for on their own. Many families are now opting to go to two-salary set-up with both parents working just to keep the family fed and housed. Many are pinning their hope on the incoming government for a lot of help in terms of their health care needs and that of their children.

The US health care system has fallen in disarray with many not having any at all as a result of the faltering economy. Criticized for years, the past administration even took out some of the funding from the system further cutting off the ability of more people from getting the care they so need. The newly elected president has made health care one of his priorities for as the economy goes down, many more are slated to lose their access to comparable health care.
Some 40 Million children both residents and non-residents have already benefited from new legislation that prioritizes the need of children to have access to better health care. Studies into further changes are underway as the new government takes the challenge of improving health care to that comparable with private care.

For those who are still confused about the different health insurance proposals put forth by the two presidential candidates, NEWSWEEK’s Mary Carmichael has written a comprehensive article, consulting with Katherine Swartz, a professor of health policy and economics at Harvard. Here are their summaries and conclusions:

McCain’s plan: to take away the tax break workers get on health insurance at their jobs, and give people who buy their own insurance $2,500 ($5,000 for families) in tax credits.
Their prediction: Low-income people would have a hard time getting affordable insurance on their own. In the long run, employers would probably stop offering health insurance, and more people would end up uninsured than there are now.

Obama’s plan: An insurance exchange that looks like the Health Connector used in Massachussets. Every plan would have a minimum set of benefits, and you would get a subsidy if your income is below the threshold.
Their prediction: The total cost will be more than the estimate. His requiring insurers to cover pre-existing conditions would probably raise premiums. Although children and more people would be covered than there is now, some adults will continue to be uninsured.

Doctors have shown a change of heart with respect to health care which is now State controlled health control as opposed to a few years back. Doctors are set to vote on the matter this year and they might press for more action from the federal government to look into the matter. State authorities have long opposed the move for it would mean a quantifiable loss of revenue the state gets from taxes paid by providers. Surveys are showing that more than 50% favor the shift which would mean more competition from private providers. The move might also allow private health care providers to move beyond state borders making competition better that can push prices lower.

The proportion is not good; salaries have not gone up as much while the cost of health care has tripled in the past few years. Many people are feeling the strain on their finances as their incomes fail to increase, some even end up without jobs. The crisis that is currently being faced by the American health care system is so dire that if nothing is done soon, it could lead to further problems adding to other equally pressing issues the government has to face. The candidates have all had their views on how the health care system should be fixed yet they are a bit of a way and it may be too late for them to do anything. Let us just hope that it does not get any worse for as it is, as much as 1.1 million Americans are already underinsured for every point on the unemployment scale.

The move would also call for closer development of health plans with the industry and lawmakers communicating on a regular basis and having providers appear in state meetings for discussions of their policies. This is hoped to be the only way people, state and providers can work hand in hand for a common goal which would be ample coverage for all at affordable prices. The creation of third part review boards would also be put in place before they take cases to court allowing more time for discussion. Just hope it doesn’t take too long for the economy is getting worse and more and more people are losing the battle in trying to maintain the health care they need for themselves and their family.