The health care reform bills (Patient Protection and Affordable Care Act, and the Health Care and Education Reconciliation Act of 2010)  enacted in 2010 give Americans many more certainties for their health insurance.  In the not too distant future, virtually everybody in the United States will have access to health insurance and the health care it brings.

The biggest and most politicized misnomer with the health insurance reform is that the cost of insurance will be going up because of it.  That is likely very untrue in the long run, though likely in the short run as health insurance companies prepare to meet various requirements of the acts, particularly that 80% or 85% of all premium actually go to health care costs.  While this standard was true through the 1980s, companies have reduced the amount of premium actually goint to pay for care consistently the past 25 years. 

Also, since the early 1980s health insurance companies have on an ongoing basis insured fewer people as a percentage of the population.  The result is that millions of people now get their health care in the emergency room at a cost of about 900% higher than primary care.  Those costs are rarely paid by the person receiving the care and are thus passed to the insured population via cost shifting.  Largely because of this, our premiums have gone up about 700% since the early 1980s.  Giving people avenues for coverage will greatly reduce health care inflation due to people using emergency rooms who could go elsewhere, as well as, reduce waste created when cost shifting occurs.

Now, while it is unpalatable to many that they would have to pay for somebody else's expenses, it is law that we do not turn people away for health care.  There will be two broad groups who are not currently covered who get some form of health insurance by 2014 at the latest.  The first are those who can not afford health insurance.  Many of them will get subsidized health insurance of some form, either via Medicaid, or other programs.  The second are those who can afford health insurance, but because of pre-existing conditions could not get private insurance before.  They will have access to policies via the private market beginning in 2014 and will have a transitional plan available via the Federal HIRSP program.  Children are covered already as of July 2010.  Young adults also may now stay on their parent's coverage until the age of 27. 

One of the most important aspects of the health insurance reform is that all policies must cover preventive care.  This simple measure will help to reduce costs long term as people monitor their health on a more regular basis, not just when they are sick.  There are dozens of other provisions that will be enacted over time as well.

While we hesitate to get involved politically for business reasons, it is clear to us that the health care reform is far more good than bad, though clearly requires significant tweaks and simplification.  In the future, the role for insurance agents is uncertain due to the health care reforms, however, we anticipate that people will still need unbiased guidance in selecting health insurance plans for a long time.  So, while we maintain health insurance offerings not so much as a profit center- it is not a highly profitable business for most agents- we offer our services so that people can get an objective view of the coverages that are out there and hopefully develop a more complete client-advisor relationship. 

We are very happy to help you decipeher this complex landscape of health insurance options.  Please contact us to find out what the market has to offer you today.