The Exciting Aspects of Insurance

Okay, I admit it, insurance is boring!  There, now I’ve said it.  Not that there aren’t many topics as far as insurance is concerned, but let’s face it, it’s kind of dull.  Is that bad to admit?  Maybe I could write about life insurance.  Do you have enough?  Or Long Term Care insurance (which by the way I think everyone should buy!) How about Worker’s Compensation or even dental plans.

There are a few important things going on with Health Care Reform.  For instance the court who said Congress stepped over the line when they required everyone to have insurance while passing Patient Protection Accountability Care Act (PPACA).  I’m not one to argue about our constitutional rights, but being the insurance guru that I am, I can see how this will muddy the waters.  This is really about the law of large numbers.  If everyone has insurance, the risk is spread evenly and rates should go down, yes DOWN!

If you don’t have to have insurance, you’ll buy insurance ONLY when you need it.  If the insurance companies only get bad risk, rates will be higher.  Much higher.  Why?  Picture this, your house is on fire and while it’s burning you call an insurer to get coverage.  This would be a bad risk for insurers.  Insurers need good risk along with bad risk because that’s how risk is spread.

Why doesn't anyone listen to me?

Am I the only one who gets this?  H-E-L-L-O!

Aside from that, here are a couple of things to remember

  1. Rates go up every year, especially lately, and when all the new requirements from Health Care Reform are implemented, they go up even more because someone has to pay for it.
  2. In the small group employer market, rates are age banded.  When you have one of those really cool welcome to adulthood birthday’s like turning 40 or 50, woo hoo, your insurance premium goes up with your new age band.
  3. You are doing a good thing by providing health insurance coverage for your employees.  This is the distribution of health insurance in our country.  You are helping people.  That’s a good thing.
Enough of my rant for today.  I’m wearing myself out.
Your comments are appreciated, even if you disagree!
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