Yamileth Medina

Reform Makes Health Insurance Benefits More Transparent



Posted: Tuesday, May 18, 2010

by Yamileth Medina
VitalOne Health

Healthcare reform does quite a bit to make over the current health system in the United States. Many of those steps are controversial, and the subject of much heated debate.

On the other hand, greater transparency for consumers is something that people across the political spectrum can agree is a good thing. Even if you are against an individual mandate that requires people to buy a health insurance plan, making the benefits of the products clearer for those who choose to do so is a worthy goal. After all, that is free market competition at its best.

When buying health insurance coverage, the details of the policy are often hard to understand. Exclusions of certain prescription drugs or procedures and annual or lifetime limits are often hidden in the fine print, in complex legal jargon. You may think a cost is covered, but it turns out that you are responsible for the full out-of-pocket expense. Therefore, finding a plan can take a long time--with uninsured patients often left in the balance.

A provision in the healthcare reform law makes it so that as of 2014, insurers will be mandated to provide and clearly define essential benefits in order to participate in the insurance exchanges--and gain access to millions of newly subsidized customers.

Especially helpful to buyers is the rule that will simplify comparison shopping. That rule requires health insurance companies to list their benefits in a standardized format. There will be four or more clearly-distinguished levels of coverage, which range from covering 60 to 90 percent of health expenses.

Although experts predict that the increased benefits will cause the average cost of health insurance plans to rise, more transparency will allow consumers to more effectively shop for the provider networks, co-payments, deductibles, and co-insurance percentages that best suit their needs.

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.

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