Health Insurance Increases

As I am sure everyone has read that health insurance premiums in Massachusetts are going to rise about 7-12% for 2010. From my experience, this is actually quite a conservative figure from what I have been noticing while reviewing health plan renewals. Of course the people affected most will be individuals and small business owners.

This news made me think about why health insurance is so expensive. Well I do believe that health insurance companies may be overcharging, there may also be another reason.

Insurance is a transfer of risk. It provides protection against an unplanned future loss in exchange for payment of premium.

I believe insurance is meant to prevent the more catastrophic losses that a business or individual faces. Many people use their insurance several times per year for check ups. lab work, etc. If co payments weren't $20 or $35 and visits were paid completely out of pocket, how would this change?

By eliminating coverage for "maintenance" issues such as check ups for the common cold or a sore back we may helping to lower insurance premiums for all. How many times would you go in for a check up because you have a cold if you were responsible for the $135 office visit? Imagine if your auto insurance allowed you to file a claim because your brakes went or your tires are old. If this was the case, auto insurance premiums would shoot through the roof.

Its time to take a different look at health insurance. I agree that reform is in order but maybe we should be looking more towards health insurance policy reform

Massachusetts Comissioner of Insurance Steps Down

After implementing modified competitive auto insurance rating in MA, commissioner Nonnie Burnes has stepped down a little over a year into the process.

Since the beginning of modified competitive auto insurance, many carriers have entered the state.

I find it quite interesting that someone would shake up so many things in the MA Auto insurance market just to leave shortly after.

Your thoughts?