Maybe It’s Time We Re-Think The Health Insurance Model
Health Insurance premiums are a derivative of healthcare cost. The more healthcare costs the more it is to provide insurance. The richer the benefits package, the higher the premiums to enjoy those benefits.
In the United States of America we have some of the best healthcare in the world. The five year cancer survival rate for U.S. Women is 63% compared to 56% of European women. US men fair even better with a 66% survival rate versus 47% of European men. Better care is probably worth paying more for, but how much more.
Prior to the Patient Protection and Affordable Care Act (PPACA), each state governed it health laws. Some states had more requirements than others. An insurance mandate is a requirement that an insurance company must follow in that particular state, such as mental health coverage. If mental health coverage is mandated by the state, then all carriers must provide that coverage. There are over 2000 different mandates when counting both individual state and federal mandates. Although mandates continue to be added, many remain controversial. Patient advocates believe they help ensure adequate health coverage, while others complain that mandates increase the cost of healthcare and insurance. The Affordable Healthcare Act added many federally mandated benefits we now see in the cost of your premiums.
Traditional Health Insurance
Establishing the right health plan is an important part of the success of a business or school district. If you can reduce health insurance cost, you can use those funds elsewhere. With traditional, fully insured, health insurance your school district collects a premium. The premium is set by the insurance company and is fixed for a year. The only way it changes is if there is a reduction or an addition in the workforce. The health care plan pays claims based on the policy purchased. The insured is responsible for any deductible or co-pays.