What Will Happen To Health Insurance Brokers In The Individual Market?

So now that health reform has passed and haswill not ever think about health insurance much
been written about and reported on soless buy it no matter what the law. Not to
extensively, the only topic left to cover is whatmention that health care costs have risen wildly in
effect it will have on us health insurance brokers,the time it took you to read this article. And finally
and our individual health insurance market. I amand most importantly, young people and most of
about to give a scenario which is based on thethe uninsured right now for that matter will not
current law (yes health reform is now a law), andbuy health insurance because the law only
what has happened in states like New York andpenalizes them $695 which is not even significant
Massachusetts where this model originates.when compared to what premiums are and what
In my opinion (which is based on the Generalthey will become under this law.
Accounting Office numbers which probably alsoMost Americans, probably don't realize this, but in
qualifies as an opinion), individual health insuranceNew York for example if you shop individual plans
will eventually end, at least in terms of agents,right now, the cost for an 18 year old male is the
just like it has in Massachusetts. where everyonesame as a 64 year old with diabetes and any
buys insurance from the exchange. So again,other condition you can think of. And this
individual health insurance will still be available, butpremium is about $1000 per month for both the
only in health insurance exchanges where each18 and 65 year old to get only average benefits.
state is responsible for their own exchange andUnder this new law, the only people buying health
which companies offer plans through it.insurance will be people that have insurance now
For our current jobs in individual health insurance(though many of them will elect instead to pay
to stay viable, everyone would need to do as thethe penalty, I know I probably would) and
law intends, which means buying health insuranceeveryone that has been declined. The rest will
or getting it through their employer. The rest ofhead towards Medicaid and to their employer.
course will either qualify for premium assistanceNot to mention that the 80% rule, (80% of
to make up the difference or Medicaid which ispremium must go to health care costs) this is the
slated to expand to cover 35 million morefinal nail in the coffin for us as health insurance
Americans. In an of itself, this is a fallacy, as thebrokers. There will be little to no room to pay us
state budgets are already so bankrupt and deficitas brokers when factoring in administrative costs.
ridden that they have been cutting benefits andI though, am not opposed to the 80% rule and
coverage to people that really need it since thebelieve that this is fair and reasonable. But looking
recession began. In fact Arizona just got rid ofat the final bill that passed, I am amazed at the
their CHIP program (health insurance for children)problems that it will cause, and more importantly
and would have cut even more, had this law notit is a financial death blow to this economy. What
passed which specifically demands that the statesis my solution? As I said all along, replace the
not cut any programs nor make it more difficult2400 page document with a 10 page document
to qualify for government health insurancethat sets up a single payer system while at the
programs.same time, leaving people the option to purchase
Further, this new health care law is based on theprivate health insurance much like Europe.
fallacious notion that younger and healthier peopleEverybody wins here, and more importantly it
will buy health insurance through the healthmakes our health care system become a
insurance exchange. This will inevitably not happensignificantly less important piece of our gdp. In the
because premiums for younger Americans areend though however maybe in 10 years, that is
going to surely (yes there should be no doubt)what this new law will cause because health
become so expensive because this health car einsurance companies will be unable to make
legislation will leave insurance companies with noenough money to rationally survive. I am quite
choice because this law has provisions that keepcertain that the people who wrote this bill know
premiums for the young and old within a certainthat as it seems like this bill will cause enough pain
ratio and because the young and healthy simplyto force us into it.