subject: Citizens Struggling [print this page] Citizens Struggling Citizens Struggling
Individuals who have pre-existing condition are suffering unnoticeably because they don't have a medical policy. Providers don't cover them because of their illness. The health insurance industry has long practiced a policy of offering affordable health insurance to prospective clients, but excluding any known pre-existing conditions for a period of up to twelve months.
Individuals become very frustrated when they hear this information repeated over and over by other health insurance providers. The problem is that every individual still needs health insurance, even low cost health insurance to cover basic needs. The problem is that many individuals will focus in on the one or two items that they must wait.
The one time this does not become a problem is when you are part of a group health care policy through your employer. When the employer decides to change the health insurance carrier, most other health care carriers will continue with health insurance coverage without stipulating the customary waiting period for pre-existing conditions.
You should always understand that insurers are entrepreneurs who make money from insuring the people. If they need to regularly give out money for the claims, this will cost them a lot of money.
However, under the new health care reform bill that was recently signed into law it created a dilemma for all the medical insurance providers. Because according to the new law, they can no longer refuse to give coverage to those who have pre-existing condition.
This poses a great threat to insurance companies to close down or make them lose a big amount of money. The new law hopes to drive down medical costs. However this seems quite impossible.
Premiums need to be raised in order for them to stay afloat considering all the additional benefits that the new law proposes. The amount of money each health insurance provider has available to pay out in health insurance claims is contingent on the collective total of all clients paying into the system.
This means that they need more healthy clients in order to yield profit. Perhaps that is why the new health insurance reform bill mandates that all citizens must participate. But what will happen if the people choose to pay the fine instead of buying insurance?
