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Obama’s health insurance program is providing some much-needed reform. In the United States, today nearly fifteen percent of the population is without health insurance and sixteen percent of the gross domestic product is put towards health care. Obama’s new health insurance program claims to be the middle approach that provides coverage for all Americans while keeping costs affordable and ensuring that no one can be denied coverage because of pre-existing conditions.

This new plan will make health insurance a requirement for people and not an option. The thought behind this idea is that those who choose not to buy insurance, but can afford it are placing a drain on the government by going to emergency rooms for unexpected injuries or illness and using taxpayer money to cover the cost. When everyone is required to, purchase health insurance there will be a larger pool of funds to cover the cost of the overall health care plan. Those who choose not to purchase health insurance coverage will be fined and those that can’t afford insurance are given access to a public option and tax credit.

Health Insurance Reform

The second goal of this program is to create an insurance marketplace that offers individuals affordable insurance options and competition. Private insurance companies could compete and trying to gain new customers would help them to keep costs down so everyone could afford coverage.

Lastly, this plan is focused on providing coverage for all individuals by eliminating the possibility that insurers deny coverage based on pre-existing conditions and caps on lifetime coverage amounts. There would also be limits on what consumers need to pay for out of pocket car.

There is no question that the health care system in the United States needs reform. Costs are continuing to go up and people are having trouble paying for coverage. Whether or not the plan that Obama has come up with is going to work or not remains to be seen.

This entry was posted on Sunday, September 13th, 2009 at 7:23 am and is filed under Business Insurance, Health Insurance, Home Insurance. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.