The Challenges to the Health Insurance Companies

It is with dire need and serious concern that I have decided to notify your board of the subject above. The insurance company is faced with lots of challenges in the market following the recent events and issues surrounding the operations of the business. These issues and events have indeed affected both the insurance and the assurance sectors of the economy, but with regards to our company it is due to the significant changes in the consumer or client perceptions that have brought in a lot of competitiveness to the assurance industry in the United States of America.

The current health insurance plans has basically left several if not millions of Americans behind in terms of development. The pre existing conditions have left most individuals wondering on how to salvage their health problems. These are conditions that existed way before the insured applied for the insurance policy for example the heart diseases and cancers which affect a good proportion of the public. This unfairness based on pre-existing circumstances makes sufficient health insurance out of stock for the millions of Americans. In almost all the states in the country right from corner to corner, assurance companies categorize inhabitants based on the pre-existing circumstances. Should they try to buy health insurance straight from assurance companies in the personality assurance market, the insurers rebuff them coverage, indict elevated premiums, and/or decline to cover that fastidious medical condition (Vargas and Torero 2009).

Millions of the US citizens also lose health insurance cover every year through an application known as rescission. If an individual is diagnosed with an economically expensive condition like cancer, insurance companies will review the preliminary health condition survey of the insured. Assurance companies can retroactively revoke the whole policy if any stipulation was missed. Coverage can also be terminated for all members of a relation, even if simply one family member botched to unveil a therapeutic situation. At least a solitary assurance company has been established to assess worker performance based in part on the sum of capital a worker saved the company during rescissions. In simpler terms the assurance company workers are optimistic in revoking sick people’s wellbeing coverage (LaDou 2004).

These circumstances therefore call for an urgent attention and solution to the sector before it literally crumbles down. High-risk pools that have been used to cover the medically uninsurable simply do not work. Several states in the country offer high risk pools for the individuals who have no access to the assurance market or rather cannot simply obtain it. Nevertheless, these pools usually charge considerably elevated rates than they charge for a healthy person in the personality assurance market. This implies that only comparatively high-income citizens can manage to pay for the coverage (LaDou 2004).

Profits through a high-risk pool are also not certain. Some state high-risk pools have yearly caps on staffing. They also bind eligibility only to citizens who had preceding group health coverage in the past sixty three days which is approximately two months. All the pools also compel pre-existing conditions for about six months or one year, during which instant care for the very situation that made somebody uninsurable is not covered.

The Health assurance transformation should make available the permanence and safety for All US citizens. Within the health assurance transformation, assurance companies should be barred from refusing coverage due to an individual’s medical account or wellbeing threat. Assurance companies should be placed obligatory to revamp any policy as long as the policyholder pays their payment in full. Assurance companies should not be permitted to refuse replenishment because somebody became unwell. Assurance companies should be barred from reducing or watering down assurance coverage for those who are or become sick (Vargas and Torero 2009).