The Importance of Insurance Regulation


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The Importance of Insurance Regulation

 

In a recent report, it is shown that American families are expected to receive $1.3 billion in rebates from insurance companies. This gift is a direct result of the Affordable Care Act, also known as Obama care.

 

The reason for the rebates is that they act requires insurance companies to pay a reasonable portion of their premiums toward actual claims. Insurance was intended as a way for families to spread the risk and for insurance companies to take a small percentage for handling the pool. Unfortunately, in Texas and across the country insurance became more of a profit center and less of actual insurance.

 

Worse, is when the political process has been influenced by campaign contributions and support from insurance companies at the expense of families. By requiring insurance companies to spend a reasonable portion of the amount they charge his premiums on actual claims, the consumer and the family and businesses win.

 

One of the reasons for such a heated opposition to the Affordable Care Act is that insurance is returned to a service and families are no longer a profit center. In other words, requiring a company to pay a specific portion of its premiums not only will reduce premiums for families but insurer insurance is affordable for all.

 

Insurance was never intended to be a profit center on the backs of families. Huge executive compensation, bonuses and exorbitant unnecessary overhead have all been chopped up to “costs” that at the end of the day Texas families are stuck with because of our failure to regulate what the insurance company must pay out.

 

Rate increase controversy that we see every year would effectively be eliminated by simply requiring insurance companies doing business in Texas to pay out 80% of their premium dollars and actual claims. Reduce claims–no problem than the families who are buying the policies should get a lower price.

 

Call your representative and demand that Texas regulate the amount insurance companies must pay out in claims and you will see your insurance bills drop radically in the very first year.

 

Greg Baumgartner is a personal injury lawyer and safety advocate.

 

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