Will Nationwide Group Health Insurance Laws Benefit Insurance Companies?
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It's the law of averages - the good health of most people balances out the bad health of others. If everyone had to purchase coverage as they do in a group health insurance setting, the the premiums paid by the healthy would offset the costs of the unhealthy.
But is this really a move that will help consumers? According to the Los Angeles Times, the legislation going through the House and Senate right now might force everyone to purchase coverage, but it doesn't place limits on how much insurance companies can charge. This means that while we would all need to find some type of medical coverage, it still might cost more than we can pay.
The article states that this move has been carefully planned by health insurance agencies since 2006, who were aware that one day Americans wouldn't stand for the same plans we've been overpaying for. The group health insurance plan could lower health care costs, but if the LA Times is correct, we might not benefit from it.
So will health insurance companies get the last laugh? Maybe not. They strongly oppose the public option, since it would provide competition and force insurance companies to lower their costs. And, recent attacks on their exemption from antitrust laws have many insurance companies on the defensive.
It's not clear yet how legislation will play out, and we have no idea what type of coverage we'll end up with. It's likely that America will function like one great group health insurance plan, but whether or not the public actually benefits from that remains to be seen.