insurance

Let's face it, here in the U.S. the medical insurance premiums for group health coverage is rising faster than inflation. As a result, a lot of companies are either reducing the levels of coverage in order to offset the cost of insurance, increasing the deductible, and or increasing the cost to the employees for the insurance premiums.

The problem is that insurance companies have no incentive to reduce insurance premiums. They continue to get record profits and this issue is out of control.

How do we get the insurance companies to decrease insurance premiums to the rate of inflation, or better yet, start reducing the cost of premiums for a change?

As an insurance agent and previous benefits coordinator, I cannot agree more with your concern. The cost of medical premiums are at an all time high. Even worse though, is individual coverage. Insurance companies, like BlueCross, have the right to exclude a pre-existing medical condition (rider) of an applicant. I cannot tell you how many times a day I hear people say, "if they aren't going to cover my medical issue, what's the point of having insurance?!". I fear it's only a matter of time before insurance companies can place the same riders on employees covered under group plans. I don't have an answer to your question that is realistic, but I definitely agree it's time something is done to regulate the costs and coverages. The only conclusion that I have been able to come up with is social care, like Canada, but I don't think we will see that anytime soon in the US - especially since, in my state, they are already reducing benefits and raising premiums given to low income children and to those who are unable to get coverage (decline due to serious medical conditions). I think the only thing we can do is to start pleading with our state governments to get involved. Insurance is regulated by each state individually, so you can image the multiple mountains set before us.

Get rid of the insurance co.'s Start by becoming a self-insured company. As a self-insurer, you have the right to exclude payment for whatever drugs and medical conditions you choose. You should exclude all chronic diseases and cap annual payouts. Encourage your employees to pick up a supplemental private catastropic policy. You will probably notice that your employees will be healthier and able to work harder and miss fewer days because the sick ones will quit.

we would have to get hospitals, doctors and drug

companies to quit raising their prices first

get rid of asymetric information. With that gone everyone would pay the rate that fits their health level.