You Might Lose the Health Insurance You Like

There will be inevitable changes in the health insurance policies though it will be advantageous to the consumer as they will be more profitable to all concerned.

Many people who buy health insurance this fall may have to change them – as they may not comply with President Obama’s Health Care law. They along with some small businesses will have to find replacement plans.

The state officials are worried about the confusion that may abound. The Affordable Care Act is going at a galloping pace even though many Republicans tried to repeal.

Customer Care in Health Insurance Industry
Health Insurance Industry is a service-oriented industry with customer satisfaction and customer grievances being important components of its business operations. Both the issues – Customer satisfaction and Customer Grievances have been described in the article in co-relation with the health insurance sector.

The market places or health exchanges will be operational from October and mid segment people can buy their insurance and low income people will be covered under expanded Medicaid – if the state has the option.

Though there are many bumps, which is to be expected this will be another added bump in trying to cover almost 50 million uninsured people.

The President had promised that: "If you like your health care plan, you'll be able to keep your health care plan." Once consumers realize they are getting a superior coverage under the new law they won’t mind the changes.

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Health and Human Services spokeswoman Joanne Peters released a prepared statement saying: "Beginning in October, individuals and small businesses will be able to shop for insurance in the marketplace, where we are already seeing that increased competition and transparency are leading to a range of options for quality, affordable plans."

About 14 million Americans presently purchase their health policies individually, a number expected to more than double eventually because of the new law's subsidies and one-stop insurance markets. But the transition may not be very smooth.

Health Insurance
Health insurance has emerged as one of the fastest growing segments in the non-life insurance industry with 30% growth in 2010-11 with annual premium collections being over Rs 6,000 crores.

"The impending changes ... have the potential to cause policyholder confusion," said a recent memo from Iowa Insurance Commissioner Nick Gerhart to insurers. Though a Republican-led state, Iowa is helping to carry out major portions of the health care law.

In Washington state, the changes will affect more than 400,000 people, said Stephanie Marquis, spokeswoman for insurance commissioner Mike Kreidler. Marquis said she expects the premiums for replacement plans to be similar to current ones, but with better coverage.

Health Insurance For Pre-Existing Conditions
Many people worry about getting health insurance plans for pre-existing conditions and they believe that if they are suffering from a medical condition, they will simply be denied insurance coverage.

"Your costs involve more than your premiums," Marquis explained. "It's also what you would have to pay out of pocket if you had actually used your health plan."

"You're going to be forcibly upgraded," said Bob Laszewski, a health care industry consultant. "It's like showing up at the airline counter and being told, 'You have no choice, $300 please. You're getting a first-class ticket, why are you complaining?'"

"If you like your health care plan, you'll be able to keep your health care plan, period," the president reassured the American Medical Association. "No one will take it away, no matter what."

At the time, some saw the promise as too broad, given that health plans are constantly being changed by the employers that sponsor them or by insurers directly.

State insurance spokeswoman Marquis said, "I don't think it is necessarily a bad thing that they are going to be getting a replacement notice, because they going to be able to go out and shop in this marketplace and they'll be getting better coverage."

References:

Hannah Punitha (IRDA Licence Number: 2710062)

Ricardo Alonso-Zaldivar, 30^th May 2013

Source-Medindia