Medical Insurance Blog

Financial Relief from Medical Insurance Reform Propositions

This post continues a series of blog articles focused on just the possible benefits of medical insurance reform. No one is certain how the healthcare reform bill will continue to evolve or how it will be financed, but these are some of the benefits that will be enjoyed by many: 

• Increased regulation for medical insurance companies to ensure consumer protection. Medical insurers will be prevented from establishing lifetime limits on healthcare coverage or arbitrarily dropping coverage.
  
  
• Immediate health insurance options for people who have not been able to obtain it. This includes even those with conditions such as type 2 diabetes and high blood pressure (which together make up over 30% of the general population). Those deemed "high risk" will also be able to find affordable medical insurance.
  
  
• Increased investment in wellness/prevention programs, which will save money overall.
  
  
• Increased medical insurance coverage for early retirees, who have seen their coverage steadily declining over the past decade. Reforms could reduce premiums for retirees and their families as much as $1,200.
  
  
• The elimination of overpayments which cut into the pocketbooks of Medicare subscribers.
  
  
• Increased prescription drug coverage, by reducing the "doughnut hole" coverage gap.
  
  
• Free preventive services for seniors through Medicare. For instance, a colonoscopy that can cost $800 would be covered for free. If caught early treatment is much less expensive.
  
  
• Tax credits for small businesses for health care.

States would also see benefits through lower employee premiums and coverage increases.

Health insurance exchanges empower families to make their own decisions on health care that fits their current situation, even in transition or if medical needs change. They will benefit taxpayers, as increased coverage means less uncompensated care, which is often passed onto state governments. They will also see an increase in long-term care and community-based services.

Many of these changes-such as the promotion of health screenings and other preventative services-will pay for themselves. They will also prevent unnecessary readmissions, which is an issue since it is estimated that as many as 20% of discharged Medicare patients are readmitted to the hospital within a month. Reducing the bureaucracy will also make things easier on medical practitioners, who spend an average of $68,000 a year on navigating the paperwork trail.