Insurance Companies and Universal Health Care

Insurance companies serve a very important function in our society. The purpose of insurance is to share risk. Risk is the amount of economic loss that someone is willing to assume in an activity. For instance, a bank would not loan money for the purpose of buying a house, unless the house was protected against losses such as fire, wind and other perils. That protection is provided by a Homeowner’s policy.

A loan to purchase an automobile would not be available unless the car was insured for losses by theft or collision. That protection is provided by an auto policy.

Health insurance is a policy that shares the risk of losses caused by injuries or illness. A share of the risk is assumed by the individual through a deductible or co-pay. In-other-words, if someone visits the doctor, that individual may be required to pay the first $15 or $20 of the visit. The health insurance company assumes the risk of the remainder of the cost.

That shared risk comes about through an exchange of ‘consideration’. Consideration is value. The insured pays a premium in exchange for the promise of the insurance company to pay certain costs associated with the insured’s health care. Which brings us to the controversy surrounding the government’s efforts to institute what some call universal health care.

No matter what side of the argument you are on, in favor or against universal health care, one issue has been settled. President Obama stated publicly that it is impossible to insure the ‘uninsured’ without additional costs. So, the idea that this will be a ‘deficit neutral’ policy has been debunked by the administration itself. Either taxes go up to pay for the program, or health care will have to be rationed to keep costs neutral, or bring them down.

In response to the public out-cry about a government health care program, the administration has called the insurance companies villains. After all, insurance companies exclude preexisting conditions for some period of time when an individual enrolls (however that is not always the case with group policies), and insurance companies are making a ‘profit’.

PreExsiting Conditions

Think about the concept of risk and preexisting conditions. An individual has a home that has been damaged by fire. Would a homeowner’s insurance company now write a policy that would cover the repairs to home caused by the preexisting fire? Of course not! That is not shared risk, that is bad business.

An individual has a preexisting health condition, say diabetes. Purchasing a policy that would exclude the treatment for diabetes for a limited period of time (usually two years), now results in a shared risk. The health insurance company will cover the person for other perils, and if that individual pays the premiums over time, that exclusion regarding the preexisting condition is then dropped.

Is it possible for the government to insure everyone in the United States and force insurance companies to provide policies without regard to preexisting conditions? It is possible, but not without driving the cost of health-care way up. After all, the money to pay the doctors and hospitals have to come from somewhere and President Obama stated that ‘We are out of money’. Since the government doesn’t earn money, its only source of revenue is taxes.

Profit

Insurance companies are being cast as the bad guy since companies make a profit. Which do you prefer, companies that are well run that make a profit, or a company like General Motors that required billions of dollars of taxpayer money to bail the company out? A profit is what allows companies to expand services and provide jobs. Companies that fail to make a profit, go out-of-business.

The government not only fails to make a profit, as a well run business entity should, it runs at a deficit. The latest example is Cash for Clunkers. Not only was taxpayer money used to subsidize auto sales, now car dealers are complaining that the government is not sending the checks for the Clunkers that were promised. It appears that many buyers will have lost their old cars and now face repossession of the new cars purchased since the money for the program did not actually exist.

This does not bode well for a government run health care system.

Tort Reform

Doctors and hospitals must practice defensive medicine. People will sue for anything. Tort lawyers use a ‘shot-gun’ approach when filing a malpractice lawsuit. All doctors, nurses, technicians and hospitals involved in a case are named as a defendant, whether that party had any actual responsibility for the claimed injury and damage.

We need a loser pay system, which provides that anyone who brings a lawsuit and loses, is required to pay the other side’s attorney fees and expenses. That would do away with most frivolous lawsuits and bring the costs of health care down.

Big Government Solution

Government should be required to live within its means. It does not, and the government, not insurance companies, is the villain in this scenario.

The founding fathers did not foresee a large, powerful centralized government. That is what was the war of independence against England was all about. The US Constitution delegated specific powers to the Federal Government, and it does not specify taking over any private sector industry.

Medicare and Medicaid are government health care programs on the verge of collapse. Even President Obama admits Medicare cannot be sustained. No program can be sustained when it runs at a deficit and all government programs run at a deficit.

Universal Health Care will run at a deficit from day one and that is just bad business.

Guidelines For Assessing and Acquiring the Best Car Insurance Rate

Searching for a good car insurance policy can be an expensive undertaking, be it in time or finances, particularly when you need to analyze several insurance company policies and quotes in an attempt to get your hands on the best car insurance policy. Looking for your insurance policy online can in effect make the research progress simpler. Online car insurance quote generation providers allow you to view multiple quotes from many providers as a result of one search query. The process of using this Internet facility is as follows:

1: Provide personal and car details

Online insurance quote generators are linked to many cars insurance company’s websites presenting you the opportunity to view many quotes from several company’s all from one source: their website. All one needs to do is submit their personal and car details. Details that are needed include your driving record, car make, mileage, registered drivers and what the function of the car is, whether it’s a private or commercial car.

2: Review quotes

After you have submitted all the necessary information required, the quote generator will process your information and whenever they get a result that suits your criteria you will probably be informed by e-mail or an on screen pop up on all results that have been generated. These rate quotations are not final, thus giving you the opportunity to evaluate the insurance company’s premium rates and any other details about the policy.

3: Buy the insurance cover

Once you have found the policy that meets all your coverage needs and at the best rate then you may need to start the buying process. This can be done either on the quote generating website or you may be directed to the website of the company of your choice

How to Compare Term Life Insurance Companies

When you are purchasing term life insurance for yourself or a family member, you are creating a contract between you and the insurance company. When you hire a contractor, wouldn’t you check out the company before you hire them? Getting to know the insurance company that you are going to trust with your family’s future is far more important. There are some basic things that you need to look at before you sign on the bottom line.

Currently in the United States, there are over 1,500 insurance companies operating that sell life insurance policies to clients. Most of these companies are simply subsidiaries of their parent companies. These subsidiary companies are commonly created because each state has different laws, and this allows the companies to be able to tailor their policies to be able to meet that state’s rules and regulations. The parent company and the subsidiaries are separate companies, but they all operate under the same corporate umbrella. Using a single centralized company would not work due to all the disparate laws and jurisdictions. A very important consideration is whether the insurance company has an entity in your local state. Otherwise, in the case of a dispute, you will not be able to bring the case before your state insurance regulatory agency.

Once you find a company that has an operation in your state, there are some important considerations that you should look at, including the following: the policy, the company, financial stability, and claims settlement.

Obviously, you want to verify the policy. Typically, this is the step where most people stop, but this is only one part of what you should check. Make sure that the policy meets your needs. Read the whole policy, including the fine print. Make sure that the policy has all of the features and services that your agent promised. After you sign the policy, it is too late.

When selecting the insurance company, never rely solely on the company name. The name that they select has a lot to do with marketing, and the name that they choose is intended to project financial strength, fairness, dependability, etc. Words that are commonly used in the name include reserve, security, assurance, and equity. Don’t trust these words without examining the company’s history and credentials. It is also a good idea to go with trusted companies that have been in the business for many years. They have been around long enough to have a trusted name in the business.

Because you are buying this policy for many years, you want to make sure that the company will be there when you need them most. It is important to take a look at the financial strength of the company. In order for the company to survive, you need to make sure that they have a strong financial foundation so they can survive down times in the market. You can check their financial ratings from several independent agencies. You want to select a company with the highest rating possible.

Also take a look at the company’s record for paying claims. You can get this information from the national claims database or from your state’s insurance regulatory agency.

These are just some of the things that you should check on before you sign up for any policy. Make sure you are comfortable with it before you purchase the policy. There are many companies that can offer you quotes on term life insurance.

Ways to Compare Your Car Insurance Rates

When you set out to get the best rates on your car cover policy, you may be overwhelmed by the amount of information that is available to you and it may seem like you have no way in which to grasp the terminologies and concepts. However, with a bit of self-education and digging, you will be able to fully understand the right concepts in order to save you the most in the end.

It comes as no surprise that everyone is looking to save money on their car premiums, it can be expensive depending on a few factors, these include your age, your past driving record and the amount of claims you have made. So looking at each one individually, will help you have a better grasp of the policies.

* Your age plays a huge part in how much you will pay in premiums. If you are an established driver, you will pay less in premiums than someone that is a brand new driver and a student. This may seem unfair to you especially if you are a student, but you have to remember that your inexperience in driving makes you a greater risk to the insurance companies as a whole.

* Your past driving record also plays a huge role in how much you will pay for your car premiums. For instance, if you have had several accidents in the past, you become a higher risk and therefore are more likely to pay much more than someone that has had no accidents.

* The amount of claims you have filed also determines the premium amounts. For instance, if you have filed claims for small items in the past that were unrelated to an actual accident, it still increases your risk in the eyes of the insurance companies. Therefore, it is often better to not file claims for small items and only make a claim in the event of an accident or theft.

Keep in mind, car insurance comparison can be done online to give you the best view of what is available to you and what you can expect to pay in premiums. Here again, the claims you made in the past, your age and past accidents will all play apart in how much you end up paying. So the cleaner your record, the less you will pay, unless you are a student or very young and purchasing your first policy.

As you get your car insurance comparison rates online, you can then contact the actual brokers and ask any further questions you may have in order to fully understand the policy being offered to you. You may also make adjustments to the plan in order to suit your needs further. You can take out higher voluntary excess in order to lower your premiums, but make sure the voluntary excess is not so high that you cannot afford to pay then in the event of an accident.

Lastly, car insurance comparison is the best option when you are simply unsure of what you need or how much cover you need. Comparing plans helps you to fully understand the various aspects to the policies.