Health Care Reform Vs. Health Insurance Reform

Health care reform has been a hot item starting prior to the most recent Presidential Election. The Obama Administration, has now moved health care reform to the forefront of their agenda. Regardless of your political affiliation, the obvious facts are that health care costs have continually increased over the last decade. How should the problem(s) be resolved?

The average person who favors government intervention with health care reform believes that the reform needed is with health insurance. Be careful not to confuse health care reform with health insurance reform. The two issues should be completely different, but it seems the Obama Administration has focused their energies in solving the health care issue by focusing on health insurance.

While there have been few specific plans for the administration’s reform, many experts believe that the reform will involve a major involvement from the government. While there are factions in this nation that favor a “Nationalized Health-care System”, there is equal opposition. Unfortunately, the public divide seems to rest within the “class system”. A majority of those families and businesses in the upper-middle to upper class oppose a nationalized system, while the lower-middle to lower class favor a Nationalized Plan.

I say to those that favor a Nationalized Plan, be wary of what you wish for! The problem with the divide actually resides with education and communication. Too often, those in the lower portion of the class system have been conditioned to believe the Insurance Companies are the big, bad profit mongers that cause your premiums to increase. Let’s be frank, insurance companies are in business to make money. However, if you take a look the profit margins within most health insurance carriers, you will see that most are lucky to achieve a 10% profit.

If the problem with our health care system is not with the health insurance carriers, then where should the blame go? Unfortunately, there is no one cause for the skyrocketing cost of health care. Rather, there are multitude of issues that have caused our health care system to become the inefficient beast you see today. There is no one “magic” pill that will fix our system.

If you take a step back and analyze our system as whole, you have to concur that we have the best health care services in the world. If this were not the case, then why would the world’s wealthiest people fly around the world just to have their medical needs taken care in the United States? The fact is, wealthy people who live in countries with nationalized health care systems do not trust those health care providers with routine procedures, much less the more complex ones.

So if we can agree that the health care professionals and facilities are the best in the world, then you should further assume that those individuals providing that care are deserving of whatever money they make. For my part, I want the guy who is about to open my chest up to perform heart surgery to be paid like a surgeon, and not a garbage man. So how do we fix our system?

The first thing is to focus on the real problem. The real problem is with the inefficiencies present in the system, not with the insurance industry. There are cost savings available through the efficiencies that can be made through the use of technology. By gaining the cost savings within the system itself, health care providers (not the actual professionals) do not have to charge as much money. That means the health insurance carriers do not have to pay as much to the providers. Guess what! That means the health insurance carriers do not have to charge as much in premium. Finally, Joe & Jackie Blow do not have to pay as much for health insurance!

President Obama, focus on the real problem of fixing our system, and health insurance premiums will become more affordable.

Jack Wingate is a Professional Insurance Advisor and Founder of ALLCHOICE Insurance in Greensboro, NC. For more information about Jack Wingate, ALLCHOICE Insurance, or North Carolina Health Insurance please visit

As part of Obama’s campaign platform, the president promised to make an affordable healthcare for all Americans. As the number of Americans not insured continues to increase and premiums increase, the present administration says that the time to make a better system will arrive. Of course, it is a good promise. This article will cover news and info for Obama health care reform. Take note about each perspective and the plans.

Obama Health Care Reform is part of the Business Exchange proposed by James Rickman. The topic contains resources for the president health care. In March 2010, the president gave a speech in the rally at Pennsylvania saying the needs of health insurance reform, also calling the Congress to hold final up or down votes in reform. As of 2011, legislation remains contentious with states challenging federal courts and the majority of voters opposed.

Expanding Medicaid and Insurance Subsidizing

Health Care Reform law is comprise of health related provision to take effect several years, including the expansion of Medicaid eligibility for individuals making up 133 percent of federal poverty levels, subsidizing the insurance premiums for individuals making up 400 percent of FPL, so their maximum out of pockets payment for yearly premiums would on sliding scale of 2% – 9% of their income, offering incentive for the business to give health care benefits, leaving out denial of coverage and the denial of claims based in the pre-existing annual coverage capitals and support for the medical research.

Community Rating, Guaranteed Issue, and Individual Mandate

Beginning in the year 2014, the Obama Health Care Reform would forbid insurers to deny their coverage to sicker applicant and imposing special conditions like higher premiums or payments. Healthcare expenditures are highly focused in most expensive 5 percent of population of spender accounts for just half or aggregate healthcare spending, while the bottom of 50 percent spenders account for just 3 percent, this means that the insurer gains to have from preventing the sick outweigh any possible gains from care managing.

Efficiency of the Health Insurance

2010 acts needs insurers to cover cost, needing at least 80 percent of the premiums should be spent in the medical care of the quality improvement. It also requires full coverage for immunizations and screenings and through prohibiting life time and yearly caps. Few insurance schemes have been considered to be insufficient.

Getting Rid of Overpayment in Medicare Advantage

Obama Health Care Reform offered Medicare A and B coverage. Under the revised contract during the previous presidency of Bush, Medicare was over paying the private insurer. They estimated $ 12 billion per year of over payment. It means that the average individual was paying $ 90 each year for traditional Medicare as subsidy in private insurer. The systems conserve private insurance as well as private healthcare providers and provide more subsidies to allow the poor to purchase insurance.

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