Why do insurance laws vary so much from state to state?
April 22nd 2009 19:42
I am a supporter of a national health plan, but I doubt I'll see one implemented in the US anytime soon. I would, however, like to see, at least, a uniform insurance policy across the nation.
If you live in Michigan, New York, Maine, Vermont, Massachussets, or New Jersey, you probably wonder why the rest of us are so concerned about health insurance reform. In those six states no one can be turned down for health insurance based on medical conditions or health status. This is called guaranteed issue. In addition, no one can be charged a higher premium. This is called community rating.
With the amounts of contributions to political campaigns from insurance companies, it is no wonder why most politicians do not support a national health plan. They don't have to worry about it for themselves or their families, and most of them don't really care about their constituants.
I know a lot of people who are adamantly against a national health plan, or "socialized medicine." These people obviously either have no medical conditions which can keep them from getting insurance, or they have always been eligible for employer provided plans (which are guaranteed issue no mater where you live). Most of these people I've talked to think that a national plan will just help people who are "too lazy to get out there and get a job."
First of all, not every job comes with insurance. Also, many so called "jobs" are actually treated as independent contracts, freeing the "employer" from traditional employer responsibilities such as providing benefits, withholding taxes, etc. An independent contractor is technically self-employed and find insurance for himself and his family. These people, the independent contractors or self-employed, are not "too lazy to get out there and find a job," they are working. As long as they don't have any medical conditions, such as type 2 diabetes, cancer, etc., they are usually able to find insurance at a reasonable rate. If they are unfortunate enough to have a medical condition, however, they are usually unable to find insurance, because the insurance companies won't cover them.
What options do these people have? They can move to one of the six states that have guaranteed issue and community rates. They can obtain insurance through their state's high risk pool - which usually means paying at least double the premium rates. They can go with a lesser type of insurance, such as Cinergy, and be at risk of bankruptcy if they have a catastrophic illness. I suppose they could move to a different country, such as Canada, France, United Kingdom, or almost ANY other country in the world. (The US is one of only 3 or 4 that do not offer national plans.) They could find a different job - one that provides insurance - but that's not so easy either, especially in these days of extreme lay offs. Or, finally, they can go without insurance and pay for all health care costs out-of-pocket.
None of these options seem fair. Everyone in this country should have the same options for health care. Everyone should be able to get insurance - at an affordable rate. And everyone should get the same tax advantages (deductions) for the amounts they pay for insurance and other health care expenses. Regardless of health status. Regardless of employment status. Regardless.
If you live in Michigan, New York, Maine, Vermont, Massachussets, or New Jersey, you probably wonder why the rest of us are so concerned about health insurance reform. In those six states no one can be turned down for health insurance based on medical conditions or health status. This is called guaranteed issue. In addition, no one can be charged a higher premium. This is called community rating.
With the amounts of contributions to political campaigns from insurance companies, it is no wonder why most politicians do not support a national health plan. They don't have to worry about it for themselves or their families, and most of them don't really care about their constituants.
I know a lot of people who are adamantly against a national health plan, or "socialized medicine." These people obviously either have no medical conditions which can keep them from getting insurance, or they have always been eligible for employer provided plans (which are guaranteed issue no mater where you live). Most of these people I've talked to think that a national plan will just help people who are "too lazy to get out there and get a job."
First of all, not every job comes with insurance. Also, many so called "jobs" are actually treated as independent contracts, freeing the "employer" from traditional employer responsibilities such as providing benefits, withholding taxes, etc. An independent contractor is technically self-employed and find insurance for himself and his family. These people, the independent contractors or self-employed, are not "too lazy to get out there and find a job," they are working. As long as they don't have any medical conditions, such as type 2 diabetes, cancer, etc., they are usually able to find insurance at a reasonable rate. If they are unfortunate enough to have a medical condition, however, they are usually unable to find insurance, because the insurance companies won't cover them.
What options do these people have? They can move to one of the six states that have guaranteed issue and community rates. They can obtain insurance through their state's high risk pool - which usually means paying at least double the premium rates. They can go with a lesser type of insurance, such as Cinergy, and be at risk of bankruptcy if they have a catastrophic illness. I suppose they could move to a different country, such as Canada, France, United Kingdom, or almost ANY other country in the world. (The US is one of only 3 or 4 that do not offer national plans.) They could find a different job - one that provides insurance - but that's not so easy either, especially in these days of extreme lay offs. Or, finally, they can go without insurance and pay for all health care costs out-of-pocket.
None of these options seem fair. Everyone in this country should have the same options for health care. Everyone should be able to get insurance - at an affordable rate. And everyone should get the same tax advantages (deductions) for the amounts they pay for insurance and other health care expenses. Regardless of health status. Regardless of employment status. Regardless.
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