Health Insurance 101

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.

As if trade between the US and China haven�t been strained enough, a watchdog for the pharmaceutical industry in America has again found problems with Chinese-made products that are coming in legally and illegally into the US. The USFDA has issued warnings to the public regarding the use of these drugs which may contain some of the active ingredients of Viagra that may interact with certain nitrates found in other medication that can cause alarming if not fatal lowering of an individual’s blood pressure. The products in question are for treatment of erectile dysfunction and sexual improvement and have not undergone the standard USFDA examination and approval process.

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 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.

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.

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.