The State of Health Insurance after the Elections

Now that the smoke and mirrors of the Presidential debates and election are over, the nation can get back to the business of economics. The health insurance industry in particular has had a bumpy ride over the last several months while being batted back and forth as a political issue between the candidates. It’s no secret that the health insurance industry has been in need of major reform measures for many years and this election has simply galvanized the candidates to get behind their own plans.

John Rivers of the Arizona Hospital and Healthcare Association states that “the health insurance industry today is in the business of risk selection. They don’t cover a broad population and then spread the cost of that coverage over the entire group.”

This hasn’t really changed now that the election is over. With President-elect Obama and his team working to get their election platforms firmly under them, the promises made to reform the healthcare industry may become lost alongside the road to Washington. For the healthcare industry as a whole to be able to provide the best possible coverage for all citizens, it must adapt to be fair to all…sick and healthy alike.

The Shortcomings of Government Subsidized Health Insurance

Government-subsidized programs such as the ones being put forward by Mr. Obama sometimes have the result of attracting people who already have their own private healthcare policies in place. They simply find it more economical to drop their private plans in exchange for the government-backed program. Also, many employers will stop providing their own plans of coverage to employees if they know that the government plan will take care of the employees for them.

The Upsides of Government Subsidized Health Insurance

Many healthcare officials worry that if the industry is unregulated, people with poor health or chronic health issues, and will be priced out of necessary coverage. The government plan would help take care of those people with high-risk health issues so that the industry could spread coverage to a wider base of customers without over-spending on a few in high need of care.

By offering subsidies to help take care of these high-risk customers, the government can ensure that the industry can better take care of all citizens more fairly and evenly than it does at present. The economic climate after the election is - so far at least - warm and hopeful for the healthcare industry.