insurance exchange
Clouds remain in the U.S. labor market, but the sky appears to have stopped falling. This news, according to latest Labor Department data, is bittersweet for hundreds of thousands of Americans who are still without full-time job and running out of options for health coverage, when COBRA subsidies exhausted. Wall Street prepares for a loss of 130,000 jobs in November. But only a tenth were lost many — the best prospects for employment since the recession statistically began in November 2007. The raw numbers seem to provide solid evidence of economic recovery. But looking at the mirror, Economists warn the worst may be behind us, but there's more bad news to come, specifically in regard to group health coverage. Aetna, one of the nation's largest providers of group health insurance to 17 million people covered, recently announced that will require some 600,000 of its group / employer group customers through strong premium increases for higher profits for their shareholders in 2010. This after the company eliminated nearly 1,600 jobs from its lists of employees earlier this year to reduce costs. "The price that we start to the year 2009 was not really what needed to achieve results and margins that historically had been delivering, "said Aetna Chairman and CEO Ron Williams." We see 2010 as a year of repositioning, a year that does not fully reflect the earnings potential of our business. Our pricing actions should have a noticeable effect on from the first quarter of 2010, with an additional financial impact made over the remaining three quarters. "Not surprisingly, straight-forward Williams admission that Aetna is in business to make a profit and a profit made is generating criticism among the private sector and members of Congress who favor a public choice as part of the controversial package of health reform, especially taking into account the latest projections on the plan. Consider this: If the Senate bill becomes law, the Government Accounting Office (GAO) projects that the company on insurance premiums by 160 million people would be slightly lower. The premiums for 14 million insured individuals would be around 10 percent higher, but coverage would be better, and most coverage of such purchases will receive a grant towards the cost of premiums. There would be 28 million fewer uninsured, with 23 million people they buy their own policies on the secure exchange of new creation and 14 million are covered by Medicaid in 2016. At first glance, this seems like a net-net win health and those who want health insurance, regardless of public choice is adopted or not. But look a little further and you'll see another interesting trend emerging: Individual health insurance rate will be employer-based insurance coverage if the bill is approved as is. The incentive for people to come in the open market and buy their own coverage is clearly incorporated in the legislation. Sure, employer coverage may be cheaper at the end of these reforms, but when launches into a grant and better coverage, as provided by the bill, the choice is clear. More people in favor of its own policy that is not linked to their workplace. The up-side to the business owners do not have to purchase group coverage. Insurance companies themselves will not have to make cuts painful (as the recent decision by Aetna) for a profit for shareholders. Best of all, consumer choice, affordable health insurance and private enterprise again ceases to be "bad words" in the debate on health reform. About the Author:
Article Source: ArticlesBase.com – Jobs Up, Group Health Insurance to Follow?
Farmer’s Insurance Exchange at 2008 Learn from the BEST
