Health Insurance Companies Are Using New Laws As An Excuse To Raise Their Rates

by Ethan C Kalvin - Date: 2010-10-11 - Word Count: 391 Share This!

Government officials are cautioning insurance companies to stop utilizing scare tactics to steam up public concern regarding government changes in the health care system. It would seem that several health insurance companies are using the new laws as an excuse to boost premiums and are blaming the government for this in an attempt to elevate public outrage at the new insurance plan.

Insurance companies are claiming that these rate hikes are justified and that the cause actually has nothing to do with the government plan but have to do with the increasing cost of medical services in addition to the impact of young people and healthier people dropping their health insurance due to the weakening economy in addition to the extra benefits that are designated by the changing laws.

Government officials do not believe that the health insurance companies are suffering, reporting that their profits are up significantly from last year and that they are making use of this as an opportunity to scam the public under the canopy of the new program. Naturally, health insurance companies and the association that binds them stand behind their rate increases declaring that the new laws require increased benefits and that those increased benefits are costing them significantly thus some of that cost must be supplemented by the public.

Some of the modifications that are being instituted include no lifetime maximum benefit for medical services, coverage for those up to age 26, and no cancellation of coverage except in cases of fraud. All health insurance plans have to also cover preventative services and provide access to doctor's with certain medical specialties without the need for a referral.

Although it seems that both sides of this debate have some good points in the end, this will deliver little resolve to those American's who are being blessed with higher health insurance premiums for the coming year. Essentially having better insurance will benefit all, yet, one must wonder at what out of pocket cost. It seems that all that is happening is that we are getting more benefits by paying more in premiums and if this is the government's way of rebuilding the health insurance program in this country many American's are going to be angered. Surely they plan to reform the costs of health care or how do they truly feel that this plan is going to work?

Related Tags: health care cost, rising health care, cost of healthcare

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