Private Insurance Companies Do Want Change...but On Their Terms...
Welcome to this installment of the Weekly Health Insurance News Roundup. Again, this week we will look at one article that was better that the others I found. It comes to us from the LA Times and is entitled, "Private insurance companies push for 'individual mandate'". This article looks at how private insurance companies are now striving for change to the health insurance and health care systems wherein over a decade ago, they were dead set against it.
According to the article, the private health insurance industry has changed its tune regarding reform because "it needs it". Health insurance companies have been losing money steadily since 2000, and enrollment rates have also been declining steadily since then. The current recessionary economic climate has only accelerated the problem of fewer enrollments and less money.
While the industry is indeed now in favor of reform, it wants reform on its terms, which essentially means an individual health insurance mandate -- like what's in Massachusetts -- wherein everyone is required to purchase health insurance, and the government subsidizes those who can't afford it. This means the millions of people who don't have insurance would be forced to get it one way or another. This would be a huge boon to the insurance companies, but would it be for the consumers?
The article says that regardless, something needs to happen before the millions of baby boomers in this country begin retiring in 2011. That will put tremendous strain on an already weary system that might crumble under its own weight if something isn't done about it, and soon.
Will these changes be accepted by lawmakers, or will they want more? How much will the insurance industry budge? It's impossible to say at this point, but the good news is now both sides, lawmakers and insurance companies, know that change is needed. That is a huge step, one that will hopefully carry us into the next phase of reform.
