HEALTH INSURANCE COMPANIES

The White House and Nancy Polosi have both demonized the health insurance companies without really giving a reason why. I imagine the every increasing cost for health insurance is the main point. Put what has the insurance industry say about, nothing that I could find. So it leaves it up to us to try to look at both sides. We know what the political side is, so that just leaves the insurance side. Here is my take on the insurance.

The last house I bought I naturally had insurance for it. The knew the monthly note would include a fixed mortgage rate, a fixed principle. I also knew that it would include insurance that would continue to rise through the years and I knew why, the value of the house would increase as the years past, that's the advantage of buying a home. Now lets apply this to health insurance. What could cause health insurance to go up. The first thing that comes to mind is GE (General Electric). GE comes out with much improved MRI machine, the cost for which is double that of their last machine, but for hospitals it's a must piece of equipment. The hospital gets buys one, now how does the hospital pay for it, it does like any business does, the hospital increase the cost for an MRI, this in turned is passed on to some one's health insurance. The insurance company is a business, they thus pass on the new cost to their customers in the form of higher insurance cost. Apply this example to doctors and the lack of tort reform, the doctors pass their insurance cost to your insurance company who then passes it on to you in the form of higher insurance premiums. Add in a lot of other costs that hospitals and doctors incur that they pass on to health insurance companies and you can see the effects. So are health insurance companies the demons. Something to think about.

What say you, give your comments.