Cheap Health Insurance–Why the industry needs regulation

The notion that the market will provide efficient, quality health insurance is a figment of the same imagination that brought us gimmicky mortgages, derivatives and credit default swaps.

Some horror stories in the Seattle PI (website paper):

“We read everything, and it looked like it was really good,”

“But a year later, his wife underwent surgery and Stewart was saddled with $20,000 in medical bills. He has been quarreling since with the insurance company, which said his wife had a pre-existing condition.”

“a Bainbridge Island woman sued her insurance company, alleging that it misled her into thinking she had comprehensive coverage only to later burden her with $135,000 in bills.”

Average consumers cannot fully understand the strengths and limitations of proffered policies. Asking them to do so opens the door to all types of abuses a noted above. Policies have contingencies that people don’t fully understand. Deductibles expressed as per cent of fees sound reasonable until one is confronted with $100,000 or more in bills.

Medicynical note: We need standardized policies with equal benefit structures. Companies would compete on the quality of services, amount of deductibles and copays, and the efficiency of their administrative services.

Powered by Zoundry Raven

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s