Insurance companies have a very important function in our society. The purpose of insurance is risk sharing. The risk is the sum of the economic losses that anyone is willing to meet in an activity. For example, a bank would not lend money for the purpose of buying a house when the house was protected against damage such as fire, wind and other hazards. This protection is a policy owners.
A loan to purchase a car is only available if the car for any loss due to theft or collision was insured. This protection is provided by a motor insurance policy available.
Health insurance is a policy that is causing the risk of losses due to injury or illness leaves. Some of the risks borne by the individual through one. Franchise or share in other words, if someone visits the doctor, that person may be liable to the first $ 15 or $ 20 to pay for the visit. The insurance covers the risk of the remaining cost.
This risk is shared by an exchange of “consideration”. Consideration is the value. The insured pays a premium in return for the promise of the insurance company pays certain expenses in connection with the insured must provide healthcare. That brings us to the controversy surrounding the government’s efforts to determine what some call the universal health care.
No matter which side of the argument that you are for or against universal health care, a problem was fixed. President Obama has publicly stated that it is impossible for the “uninsured” to ensure no additional cost. So the idea that this is a “deficit neutral” policy has been discredited by the administration itself. Either taxes go to pay for the program, or health care rationed in order to keep costs down or neutral.
Poorly in response to the out-cry about a public health program of the government, as the administration of insurance. After all, insurance policies exclude pre-existing conditions for a certain time a person registered (although this is not always the case with Group Policy) to make, and insurance companies ‘profit’.
General PreExsiting
Consider the concept of risk and medical history. An individual has a home that was damaged by fire. Insurance is a privately owned now write you a policy that repairs to the existing building by a fire caused covers? Of course not! This is not risk-sharing, which is a bad deal.
A person has a pre-existing condition, say diabetes. The purchase of a policy that excludes treatment for diabetes, for a limited period (usually two years), now is the result of a common danger. The health insurance covers the person for other hazards, and that person pays the premiums over time, the exclusion of pre-existing condition is then abandoned.
Is it possible to provide for the government in the United States and all insurance policies to the political strength to pass regardless of pre-existing conditions? It is possible, but not without driving the cost of health care. Finally, the money paid to doctors and hospitals come from somewhere, and President Obama said: “We have money.” Since the government does not earn money, his only source of income taxes.
Profit
Insurance is cast as the villain as companies make profits. What do you like better, companies that are well managed to make a profit or a company like General Motors needs billions of dollars in taxpayer money to make the company bail out? One advantage is what allows companies to expand services and create jobs. Companies fail to make a profit, you take it out of business.
Not only the government can not make a profit as a company should be managed properly, it runs a deficit. The last example is the scrapping. Not only the taxpayers’ money be used to subsidize auto sales, car dealers are complaining that the government sends checks for Clunkers, that was promised. It seems that many buyers have lost their old cars and now again in the face of new cars from the funds for the program, there really is not purchased.
That does not bode well for a government run healthcare system.
Tort Reform
Doctors and hospitals have to defensive medicine. People will sue for anything. Tort lawyers are using an approach of “shot-gun” when filing a malpractice lawsuit. All doctors, nurses, technicians and hospitals involved in a case are named as defendants, if the party had no real responsibility for the alleged loss and damage.
We need a loser pay system, which means that each person has to bring a lawsuit and loses in legal fees on the other side and offers to pay the expenses. This would remove most of the frivolous lawsuits and reduce health care costs down.
Big Government Solution
The government should be obliged to live within its means. He did not, and the government, not insurance, is the villain in this scenario.
The founding fathers did not anticipate a large centralized government power. This is what was going war of independence against England. The U.S. Constitution has delegated specific powers to the federal government, and it does not take over all private industry.
Medicare and Medicaid health programs of the government before the collapse. Even President Obama was not Medicare can be maintained. No program can assist you in a deficit and all federal programs, which is operating at a deficit.
