Cross-posted from State House Call.
Whole Foods employees talk with Reason.TV about the health care coverage that the grocery store union doesn’t want them to have.
A union official in the video says that the workers don’t know any better.
(For background, see John Mackey’s essay in the Wall Street Journal. Mackey is the CEO of Whole Foods. )
One of the common misconceptions about health insurance is that health insurers, like auto insurers, can drop their clients at any point if they become to risky. In fact, health insurers must honor their plan with their policy holders so long as they are up to date with all payments and contractual obligations.
Nonetheless, when it comes time to renew, some people find that they no longer qualify for their previous plan.
Government, reformers say, is the only solution to this problem. If insurers are not forced to keep insuring their patients, they will simply not do it – a case of market failure.
It’s obvious, though, that people would like to be able to renew their plans. This creates demand for a service that would allow them to do so.
Enter health-status insurance. Health-status insurance is insurance against the possibility that a policy holder could become far more expensive to insure in the future. An analysis by University of Chicago economist John Cochrane explains how it would work.
Under Cochrane’s proposal, if an insured person develops an expensive chronic condition, a lump-sum payment would be deposited into a health-status insurance account that would be available only to pay medical insurance premiums. This restriction would limit the temptations to commit fraud (faking an illness to get the money and then run) or to spend it and then show up at an emergency room unable to pay. In addition, if the insured becomes unexpectedly healthier and his premiums decline, the money could then be returned to the insurer.
Creating and selling separate health-status insurance policies would mean that medical insurance companies would no longer have an incentive to offload sick people. Instead, because those with pre-existing conditions would have the funds to pay higher premiums, insurers would compete for their business. “Constant competition for every consumer will have the same dramatic effects on cost, quality, and innovation in health care as it does in every other industry,” argues Cochrane.
Health status insurance is more than just theory – in fact, it’s been available in Michigan since December, 2008. This is an innovation that’s come about without government pressure that would not increase the premiums of all policy holders in the way that community rating systems, a tool the government created to accomplish a similar goal, do.
Sadly, it also seems to be an innovation that’s being ignored by politicians in the health care debate.
The legal procedures of Colorado are designed in a way so as to allow buyers of Colorado health insurance the unique chance of individual policies. One of the drawbacks of the state’s health insurance policies is the fact that insurers are allowed to reject applicants if they have a pre existing medical condition. This holds true for insurers of individual health insurance policies. As far as the parameters of Cover Colorado are concerned, applicants who have a medical condition from before can be accepted. This even holds true for individuals eligible for HIPAA – the Health Insurance Portability and Accountability Act.
Those who are eligible for the Colorado health insurance plan HIPAA are people who have rejected their group health insurance coverage plans and exhausted their COBRA or their coverage for state continuation. The Colorado Child Health Plan Plus or CCP+ is the state sponsored program that offers coverage for health insurance for kids of up to 18 years of age and pregnant women whose families are eligible for certain requirements pertaining to income. One of the advantages of this plan is that the premiums that are charged are pretty reasonable – which is as low as $25 per annum.
The Colorado Senior Health Insurance Assistance Program or SHIP offers individual counseling sessions for beneficiaries of the Colorado health insurance Medicare. In case you have questions regarding any element of the Medicare plan, or the drug benefit or Medigap, you can approach the Senior Health Insurance Assistance Program.
Why shouldn’t you go for Low Deductibles?
Low deductibles are a waste of money and any health insurance company will give you the savings in case you are opting for a deductible that is lesser than $1000. This is because you pay an increased premium and that consequently means that you have less of a deductible. If the amount of the deductible is from $2000 to $3000 per head or from $4000 to $6000 for family members and the HAS, you can actually save more money as far as the monthly premium.
There may be a different underwriting clause for different companies. In case there are pre existing conditions, the insurance provider is free to decline your offer as a result of the same. They may even not abide by the condition or even increase the amount of your premium. Certain organizations may shop for the underwriting policies on your behalf for locating the policy that best covers your pre stipulated conditions.
It is important to know the terms and conditions before buying the insurance. Certain aspects that you should know about before making the investment are:
1.Deductible
2.Co pay
3.Coinsurance
4.Premium
5.Differences, if any, between an important medical health insurance policy and a surgical or medical or hospital expense policy
Learn all about the limitations of the policy by asking after the per occurrence conditions of the policy. Revise it thoroughly to look out for separate limits on inpatient charges, daily boarding or stay and other miscellaneous expenses.
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