Importance of insurance carriers in the US

Health insurance companies or carriers as they are known are commercial organizations that pool in the financial resources of individuals by selling them insurance policies and thus decreasing the average cost per head. These carriers make their money from the economy of the scale of the policies sold, irrespective of the individual claims made at any given time. Some of the most well known insurance companies in the country are Aetna, BlueCross BlueShield, MVP, Coventry, United Healthcare and the likes.

Since, the insurance regulation states vary from state to state, not all these carriers have the license to sell health policies in all the states. Companies like Aetna and BlueCross operate in almost all the major states of the US while others are restricted to a limited number of states. MVP, for example, operates only in Vermont, New York and New Hampshire.

Insurance companies are essential as no individual would be able to afford the medical costs alone. These companies negotiate the service fees and are able to get discounts to their customers. Without the companies, residents have to pay the entire amount of medical expenses from their own pocket and considering the high cost of healthcare in the country, it will not be a affordable or practical option for many. Having an insurance plan ensures that a resident has access to affordable healthcare and insurance companies have a huge role in guaranteeing that.

Though most companies broadly have the same policies, a little difference here and there in the benefits offered and the riders attached, makes plans specific to a particular company. For instance, though MVP has the regular HMOs, POS and the Indemnity plans like all other insurance carriers, it also has the MVP Preferred EPO or PPO, TriVantage EPO – MVP’s popular 3-in-1 plan and MVP Preferred EPO or PPO Hybrid.

Though there have been several hiccups in the run to the health reforms like fraud insurance companies and questionable policies that they sell, not all companies can be seen with the same eye. In fact, it is these insurance companies that have made healthcare affordable in the USA. With the government health policies getting restricted to a particular income group and the providing only limited healthcare services, these carriers have come to rescue of the general population. Private medical plans come with a horde of other benefits that are missing in a public health plan. They are also customised according to the personal needs of the every individual. Insurance plans are not ‘one size fits all’ package. Hence a customised health plan is more effective and useful.

Insurance companies may have been portrayed as the villain of the story. But this villain is not black or white. It is a shade of grey. You may not trust these companies blindfolded but when it comes to affording healthcare in the US, they are your best bet.