Yamileth Medina

Are Democrats Being Proven Right On Health Insurance Reform?



Posted: Friday, March 26, 2010

by Yamileth Medina
VitalOne Health

As the Obama administration and congressional Democrats managed to pass health insurance reform after a year of hard work, new statistics are emphasizing why they believe their actions were necessary. Moreover, there are also indications that the American people are coming around to their point of view.

Last year, before healthcare reform had passed, total health care spending increased by nearly five percent. Keep in mind that 2009 was a year where there was virtually no general inflation whatsoever, due to the recession. In the past, health insurance companies have blamed inflation for rapidly increasing rates, but that is no longer the case.

Employers, whom Democrats believe their legislation will help, were especially hard hit. According to the Thomson Reuters report, their costs increased by 7.3% in 2009. Although the U.S. economy is officially no longer in a recession, figures such as those indicate that it may be a painful, jobless recovery. Obama has said that assisting businesses, especially small ones, with the unique burden of providing affordable health insurance to their employees, is essential for jump starting job creation. The bill does so through tax credits.

Many businesses are skeptical that the bill will have a positive impact. After all, it mandates that all companies over a certain size either offer health insurance plans to their employees or pay fines. Over the next several years, the threshold will be lowered, so more businesses will be subject to the employer mandate. However, supporters think that it--along with the individual mandate--will reduce costs by bringing millions of uninsured people into the fold. Many of those without insurance are younger and healthier than the population at large. Including them would allow the health insurance companies to spread their risk more effectively, therefore allowing them to charge lower premiums. Meanwhile, health insurers will have to become more efficient and spend a majority of the premiums they do collect from employers on health care.

Small businesses as a whole, who saw their health insurance rates rise by 9.8% in 2009, are the majority of employers in America. Maybe that's why--despite continued controversy--polls show that the public is beginning to warm up to the legislation. Obama is about to sign the bill, which is now approved of by nearly 50% of respondents. While that is now a majority, that is still low for such major legislation. Still, the trend is moving upward.

Yamileth Medina is an up and coming expert on Health Insurance and Healthcare Reform. She aims to help people realize that they can find quality health insurance plans right now. Yamileth lives in Miami, FL.. Yamileth enjoys listening to music, as well as spending time with family and friends. She lives in Miami, Florida.
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Top-level comments on this article: (1 total)
» left by straight talk
 2 years 40 days ago.
112 fans. Follow straight talk on twitter!
The emensity of what was done has already changed this nation forever. It is not in the good things it is ion the rest that many no nothing of that 1/2 of this nation is concerned and rightly so. We are now a nation divided. We now havd by the governemnets onw math a real problem with cost and one could write on and on. Yes heath care of those who were locked out, didn't have. a-ok. IT is as I say the rest that is a real concern. Best wishes, good job.
» left by Yamileth Medina 2 years 25 days ago.
15 fans. Follow Yamileth Medina on twitter!
The concern is understandable. I think this issue did more to highlight existing divisions than create new ones, necessarily. Thanks for your comment.
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