Cost Insurance

Many so-called experts, pundits, and politicians are saying that the unsustainable rising cost of health care is due to those greedy, monopolistic insurance companies. Did you know that insurance rate increases require the approval of the State Insurance Department? While I believe the insurance industry shares a piece of the blame, the rising cost of health care and therefore the rising cost of health insurance, in fact, can be attributed in large part to three main factors:

1. Government Intervention;
2. Technology;
3. Lack of Personal Responsibility.

Let’s deal with Government Intervention first. Health insurance is primarily regulated by the states. Individual states like New Hampshire have varying laws and regulations under which health insurance companies must operate. The main cost issue is “state mandates”. Would you like the opportunity to purchase a policy that covers only the expenses you wish to cover? Perhaps you do not want coverage for office visits or prescription coverage, for example. State governments require health insurance policies to cover all kinds of things that you may not need or want to insure. The new health care legislation passed in Washington will be adding even more requirements. Although the regulations will not be written for months and years, the federal government will be deciding what your policy must look like. As a health insurance broker, I would love the opportunity to assist my clients in deciding which services to insure. Health insurance companies would love the opportunity to offer a menu of options to choose from, but in large part they are barred from doing so.

Continue reading →