Insurance and PPACA Health Care Reform Laws

Like other previous health care “reform” laws, PPACA addresses the insurance piece of our healthcare system. PPACA is based on a theory: if everyone is covered by insurance, then the escalating price of health insurance will slow down. Additional parts of this legislation attempt to reduce or slow down the price of health insurance in other ways, such as setting standards of efficiency and accountability which health insurance companies must meet.

Unfortunately, changes like these only focus on one piece of our very complex healthcare system. A system with many other moving pieces, including but not limited to: doctors, hospitals, drug manufacturers, prescription drug distributors, and medical device makers. Each of these stakeholders has a financial interest. They profit when medical services are rendered and prescriptions are filled. Health insurance companies make $$ when they sell insurance. Insurance rates, whether the coverage is for a house, a car, a life or a body, simply reflect the cost of repair. Safer drivers have lower premiums.

In order to address the escalating price of health insurance, we must look at the root cause: the escalating cost of health care. Stay tuned.

health-costs

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