Health Insurance Articles
What The 2012 Health Reform Means For Private Insurance
2011-10-27
One of the most important pieces of legislation that has been tabled by the current federal government is the 2012 health reform, something that has been a long time in coming. The Democrats and Barak Obama have long sought a revamp to the current system of healthcare, and though they have been stymied in many respects, some aspects of their original legislation are set to go through in the next year. Some Americans are support of the new health reform laws, saying that they will change the landscape of healthcare for the better, while others feel that Obama and the Democrats are trying to legislate where there is no need for it, and that such laws will cause more problems than they solve. Love it or hate it, however, there is no question that the new 2012 health reform will affect private health insurance.
The first way in which private health insurance will be affected is the by the competition that will exist once a publicly-funded healthcare option is available to Americans. This kind of healthcare is not meant to replace traditional HMOs, PPOs or even self-directed plans, but rather as a way for those who cannot afford these kinds of healthcare to access treatment and medication when necessary. Despite its aims, however, the very fact that it exists will mean that private insurance companies will have to change the way they do business as some customers drift away to try out the public healthcare offerings.
In addition, the government will be regulating a number of insurance aspects which have never before been a part of its mandate. First, the government will set maximum amounts that can be charged for certain plans and services, meaning that private companies will have less choice when it comes to deciding what their services are worth. Secondly, the government will be creating a minimum standard of care that must be maintained by every private health insurer in their facilities. Those who do not meet this standard will be subject to fines or even closures by the Federal government. Some argue that this will create a higher overall standard of care for both government-run operations and those that are private. Others maintain that the red tape involved in assessing compliance and bringing failing health providers up to code will both waste time and taxpayer money, and may result in care being delivered at both a slower pace and a higher cost.
No matter what opinion Americans and insurance companies have about new health reform laws, they are coming soon, and will have an impact both on how private insurance companies do business, and how loud a voice the government has in their decision making process.
