Why People Must Buy Health Insurance ?

Why people must buy insurance?
All insurance is based on the idea that most of the time, most people are not filing claims. Regarding health care, supporters say, most people are fairly healthy most of the time, but eventually almost everyone made huge medical expenses. If only sick people buy insurance, the system would collapse because the plans would be forced to pay more than they took in. And since almost everyone who develops a serious medical treatment (with or without insurance ), the cost of treating the uninsured is passed to other people. In fact, those with insurance are helping pay the costs of those without it.

What are the benefits when I buy the insurance required?
Making the insurance mechanism underlying a stronger by getting more people in the system ensures that you get when you cover large medical bills face. With everyone paying into the system, businesses will receive a bonus of millions of new customers. These revenues allow companies to stop denying coverage the people with a preexisting condition or is likely to fall ill in the near future - or middle-aged smokers are victims of heart disease, for example.
Without a mandate, the proposed rules from denying coverage to sick people only lead to more new customers as some others just waited until she fell ill, the insurance purchase.

How insurers can afford to so many people to cover expensive diseases?
The challenge for insurers is not for routine medical expenses, the high cost of treating cancer and other serious illnesses. And Medicare now covers a large proportion of people with these problems. For those who develop serious medical problems before they become eligible for Medicare, having more people paying into the insurance pool can offset higher costs, especially if a lot of the newly insured are young people.

Can young people allowed to buy less expensive plan?
The bills being considered in Congress would use a system called "age rating" to allow insurers to charge older people as much as three times the amount that they charge young people for premiums. If this idea has been pushed too far, however, would undermine the purpose of insurance - to spread the costs and risks. A provision that would end the final bill to allow young people to buy less comprehensive plans. These plans should reduce costs, but does not cover the range of services in health care that older Americans need and tend to use more often.

California Health Insurance Rates

As millions of Californians continue to face rising costs of health insurance, legislators, consumer advocates and lobbyists in Sacramento have been wrangling over the difficulty in dealing with companies large increases.

August will be an important month that government officials try to establish a strategy to meet the new health law of the country are forging. By far the provisions of the Act is a call to states to plan for the review of "unreasonable" increases in health insurance premiums grow.

Analysts say they expect the insurance Gov. Arnold Schwarzenegger and lawmakers to act quickly. The legislature is scheduled for August 31 to adjourn and all pending legislation that will not die down.

"It's certainly a whole month active in terms of obtaining a bill," said Shana Alex Lavarreda, director of health studies at the UCLA Center for Health Policy. "This time when such a focus on the regulation of tariffs, is the best opportunity for that. "

The legislature has been grappling with three measures to crack down against the insurance.

One would prohibit health insurers to raise rates without regulatory approval, a requirement already applies to companies and automobile insurance. Another would require insurers decide to cover or charge higher than standard rates justify the refusal. The third measure would be temporary moratorium on rate increases and insurers are required to seek permission for encouraging premiums considerably.

Schwarzenegger calls that rate regulation of a "blunt instrument" that would do little to the underlying growth of medical costs to treat.

Instead, the governor's office was a separate plan that would require insurers to hire independent actuaries of their deposits, and review their proposed increases on the Internet.

Schwarzenegger contends that such review and public pressure to keep the insurers will be compatible. His government points to the recent example of insurance giant Anthem Blue Cross that higher rates up to 39% for individual policyholders in April after an independent actuary shot found errors in their submission.

"Our belief is that better consumer information and greater transparency in health care ... ensure that the costs have been contained, "said Jennifer Kent, which deals with health legislation for the governor.