Are Insurance Coverage Cost Increases Really Justified?

Government officials are cautioning insurance companies to stop using terror tactics to stir up public concern about government changes in the health care system.  It would seem that numerous health insurance companies are utilizing the new laws as a justification to increase premiums and are blaming the government for this in an attempt to raise public outrage at the new insurance plan.

Insurance companies are stating that these rate increases are warranted and that the cause actually has nothing to do with the government plan but have to do with the increasing cost of medical services as well as the impact of young people and healthier people dropping their health insurance due to the weakening economy in addition to the added benefits that are designated by the changing laws.

Government officials don’t believe that the health insurance companies are hurting, reporting that their profits are up drastically from last year and that they are utilizing this as an opportunity to rip off the public under the blanket of the new program.  Of course, health insurance companies and the association that binds them stand behind their rate increases stating that the new laws require elevated benefits and that those increased benefits are costing them significantly hence some of that cost has to be supplemented by the public.

Some of the alterations that are being instituted include no lifetime maximum benefit for medical services, coverage for those up to age 26, and no cancellation of coverage except in cases of fraud.  All health insurance plans have to also cover preventative services and present access to doctor’s with certain medical specialties without the need for a referral.  

Although it seems that both sides of this discussion have some good points in the end, this will present little resolve to those American’s who are being blessed with higher health insurance premiums for the coming year.  In general having better insurance will benefit all, yet, one must wonder at what out of pocket cost.  It seems that all that is taking place is that we are getting more benefits by paying more in premiums and if this is the government’s way of revamping the health insurance program in this country many American’s are going to be angered.  Surely they plan to reform the costs of health care or how do they actually feel that this plan is going to work?