The health program is causing alarm in foreclosures

A recent report issued by the Health and Human Services show that a number of insurers have resorted to steep insurance premium rate hikes.

Private health companies can only run if both groups of persons buy insurances – the sick as well as the healthy.

But with premiums having gone up, many of the healthy are depending more on luck to see them through rather than on insurances.

This has led to a shrinking in the reserve pools of the companies and they are being compelled by the force of economics, to hike their rates.

While the insurance companies say that their intention is not motivated by higher profits the critics are not satisfied. The latter argue that the insurance firms want to play their game on a national scale ignoring state regulations. The pros and cons of the arguments have led to a tussle over the health care reform bill. Meanwhile the man in the streets suffers.

The insurance companies argue that with more competition their chances of running the show would be better. But California is a classic case where their arguments do not hold water. It is a large state with scope for enough competition. Moreover compared to other states the insurance regulations are notoriously lax. Despite this the insurance companies want to further increase rates.

What plan would then be viable? A ban should be imposed on discrimination based on past medical records but healthy people must also buy insurances. But by increasing premiums healthy people are shying away – battered as they are by foreclosures and unemployment.

The lower income group of Americans needs good doses of aid so that they will be able to afford insurance coverage. If that is not given then the scenario will be like what has happened recently with the passage of the recent health reform bills in both the House and the Senate.

There are claims that the bills would compel citizens into the grips of avaricious insurance firms. To avoid this stronger regulation is absolutely necessary. But alternatively it would be a good plan – from the point of view of both political and economic mileage, for the Senate to place the public option back into the bill.

The main point is that this death spiral the insurance companies are referring to point to the fact that the health care system is folding up. Inaction and sitting down not doing anything is no longer a way out. Congress together with the government, being given the lead by the President, would have to see that the reform takes place now – without any delay.

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