Health Insurance Articles
Federal Laws That May Drive Up Health Insurance Quotes
2010-11-20
New federal health insurance laws set to begin phasing in next year will significantly change the insurance landscape for consumers of all walks of life. Health insurance quotes, both in price and in function, will almost certainly be affected, and there is endless speculation about what these new laws will do to the overall value of health insurance for Americans. Among the finer points of the new health insurance laws are the facts that every American will be required to carry health insurance or face a fine, and that private insurance companies will now be held to a federal standard of care. While some argue that this will lower insurance rates, there is also the possibility that health insurance quotes will rise across the board. There are a number of reasons for this.
The first is the new "federal standard" that must be maintained. In addition to creating a federally-sponsored health care option, the government will also be requiring all private insurers to meet a nationwide standard of care in all of their facilities. This will be assessed by regular inspections from government officials in order to ensure compliance. Companies that are in violation of the standards will be given fines and possibly prohibited from selling insurance until they have met the required standards. The concern here is that companies will need to invest so much time in adhering to government standards and preparing for red-tape laden inspections that they will have to raise rates to compensate for lost profits.
Another possibility is that private insurers will band together in order to create a "premium service" for Americans with means. The federal system is intended to be accessible to those from all walks of life and take care of their basic needs. Private insurers may choose to join forces and brand themselves as being the specialized alternative, and in turn charge more for their services then they ever have before, as many of those who could barely afford health care will switch to the government option. Indeed, there is some projected loss from private to public insurance, and companies may increase rates simply to compensate for this potential attrition.
While there is no guarantee about how the new federal health insurance laws will affect the overall health care market, there will certainly be some changes as companies are forced to change their standards and practices in order to comply with a national requirement. What this will mean for both private insurance quotes and the amount of people choosing a public option will take time to sort out, but there is no question that the face of health care insurance will be forever changed.
