Will The Health Care Bill Lower Premiums?

Wall Street hate relationship

As the health care bill was being initially crafted, it appeared that Wall Street and the health insurance companies would be opposed to the legislation. Congressman argued that the bill would lower health care premiums by providing a government option (public option) for people to select. Naturally the stocks of the heath care companies took a dive as they feared that they would lose business. That was before the bill was changed up in order to gain passage.

Wall Street love relationship

Following the noisy opposition to the bill by the health insurance industry, their lobbyist, and some Congressmen and women, the bill was altered. Instead of including a public option that would have likely increased competition within the health care sector, as well as lowered health care premiums, the bill was changed to include an insurance exchange. Suddenly as the premiums of the health care companies appeared safe, the noise over the bill seemed to quiet down a bit. The stocks of the health insurance companies began to increase again.

The Exchange that keeps things the same

The health insurance exchange that has been proclaimed to increase competition and drive down the cost of premiums will likely not do any of that. In fact, it could cause premiums to rise. The health care bill requires that all people in the country be insured or else they have to pay a penalty. This means that the insurance companies are going to be getting more clients than ever before, and they are going to therefore probably have to pay out more claims then before. If they are paying out these claims, then they are probably going to increase premiums to protect their earnings growth. In short, the health care bill will not lower premiums.

Related posts

1. Why Did The Reform Bill Pass?
2. Can I Keep My Current Health Plan With The New Reform Bill?
3. What Is The Health Care Bill Missing?
4. What are the Health care reform bill pros and cons?
5. Where Is The Health Care Reform Bill Headed Next?

One Response to “Will The Health Care Bill Lower Premiums?”

1. hi says:

   February 1, 2012 at 4:51 am

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