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November 21

Insurance Companies Open to Change?

Posted by admin
Filed under Health Insurance | 4 Comments

Change is a difficult and scary prospect for everyone. But sometimes it is unavoidable. In the case of the health care industry, continuing on as it has been for years may no longer be an option. With Obama now in office, major reform is looming and companies are having to concede that things are going to change. One of the biggest issues will center around the underwriting process and the business practice of using healthy, young individuals to balance out the risk of less attractive insureds and by denying those that are just too much of a risk. The effort to keep claims down and profits up has long been the backbone of the health insurance industry. But if Obama and others have their way, the practice of underwriting may be no longer an option. If he deems that insurance is mandatory and companies cannot decline people based on prexisting conditions, they will have the benefit of a wider pool of insureds but the risk of covering those with potentially expensive health care needs. How will companies adapt to this potential new system? Will it be more or less profitable in the long term?

This entry was posted on Friday, November 21st, 2008 at 12:54 pm and is filed under Health Insurance. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

4 Responses to “Insurance Companies Open to Change?”

  1. Fern on November 21st, 2008 at 3:53 pm

    Well with Tom Daschle heading up Health and Human Services I am going to take a guess that Universal healthcare is not on the horizon. Daschle wants to create a Federal Board to oversee the healthcare system but has not talked about Universal Healthcare.

  2. Daveaux on November 21st, 2008 at 4:12 pm

    OH NO!! They may have to pay on a claim. There go the profits.

  3. Jack Frost on November 21st, 2008 at 8:44 pm

    What shall happen. Did you realize that Tom D.’s wife is a lobbyist for the health insurance industry. Change what? Health insurance in a private fashion is here forever.

  4. Bud L on November 22nd, 2008 at 9:48 am

    More emphasis on preventative health and periodic screenings based on family histories so as to early diagnose will lessen the impact of having to take on insurees with pre-existing conditions. There are a lot of roads the industry does not currently have to travel to make a profit and they will be pulling some tricks out of their bag. Lesser coverage may become the norm (i.e. 70/30 vs 80/20 etc) to reduce premiums as affordability will be crucial.

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