Health Insurance Stakeholders Focus on Pain, Not Gain
By: Peterr nike
Submitted: 2009-12-04 02:39:44 | Word Count: 543
Businesses, including medical device makers, insurers and pharmaceutical companies are bracing for tax and fee provisions in the House health care reform bill.
"The health care overhaul bill produced by House Democrats would impose an array of new taxes, fees and government mandates on major players in the health industry, including insurers, doctors and drugs and medical devices makers. ... "The House added $20 billion in taxes on sales of medical devices like artificial hips and heart stents ... but it's a substantial reprieve from an earlier plan in the Senate to slap a $40 billion fee on medical device makers"
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"And while (lawmakers) also want to close the gap in drug coverage for elderly and disabled Medicare patients -- a move that could get more people to take their medications -- House leaders would require the nation's health secretary to negotiate lower drug prices under the program." Insurers too would be forced to spend 85 percent of premiums on actual costs to insure, which would limit the ability to pay bonuses, and would require rebates if less than that 85 percent is spent on health care.
The Hill reports that health insurers and drug manufacturers said the bill "would drive up costs for seniors and companies alike. A coalition of big-business groups, including the U.S. Chamber of Commerce, the Business Roundtable and the National Association of Manufacturers, issued a letter opposing the House bill outright"
"The drug industry took a big hit in the House bill. For elderly people who are eligible for both Medicare and Medicaid, the bill mandates rebates from the drug makers so that the Medicare system ends up paying less. Those rebates are estimated to cost the industry $60 billion over a decade." The WSJ notes that the bill "gives brand-name-drug companies sales exclusivity for 12 years and allows them to extend it with minor tweaks to their formulas"
With Current economic uncertainty and the threat of losing jobs, a lot of people are now trying to cut corners when it comes to their expenses. They try to save on almost anything they think is not a necessity in their daily living. Businesses likewise are also cutting back on expenses to try to maximize income. Unfortunately this includes health insurance.
Nevertheless, health insurance is highly necessary. You may be slashing the budget now without paying for health insurance, but when the time comes you need to pay for medical expenses, and you don't have health insurance, your budget will most surely skyrocket.
If you need to keep expenditure down and you find your current health insurance plan expensive, then it would be wise to change the health care plan. Go for a cheaper health care plan. This is possible by choosing a health care plan with limited coverage or you can also try shopping around for a much cheaper health insurance plan.
By doing so, you will be able to stick to your financial plan while continuing to keep your health insurance. Be reminded that saving money now without health insurance will cause you more expenses later.
