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Why Health Insurance Reform Needs to be Repealed

January 27, 2011

Chris Garlasco, Owner & Managing Partner - Founders Insurance Group

If you’re looking for a blog that talks about healthcare insurance reform from a political perspective you’re going to be disappointed. The complete lack of understanding and politicizing of the debate has only led to more confusion and it is for that reason that I have consistently discussed health insurance reform strictly from an insurance perspective. Pundits on both the left and the right haven’t even been able to distinguish between healthcare and health insurance as they use the terms interchangeably as if they were one. Politicians, have thrown around ridiculous numbers that have very little to do with actuarial science.

I have consistently stated on this blog that this “reform bill” does nothing to reform our problems in the delivery of healthcare and has only served to add additional costs to health insurance. Today, the positions that I have taken were supported by the chief actuary of Medicare, Richard Foster.

Richard Foster, Chief Actuary of Medicare. Photo credit - Washington Post

The numbers that have been reported, including those of the CBO (Congressional Budget Office), are meaningless until they go through the actuarial process. Actuaries like Richard Foster are responsible for the mathematics behind the success or failure of an insurance program. Mr. Foster has stated that he has concerns that the health insurance reform bill will do little to nothing to hold down health care costs. He is also stated that the financial structure of the so-called insurance reform may lead to people no longer being able to choose their own plan. Mr. Foster is not a politician; he is working for a government program that must operate in the real world.

Health insurance cost is directly linked to the cost of healthcare. Actuarial science is non-emotional; it doesn’t belong to any political party, and operates within the parameters of the proper dissemination of risk. Lower the cost of the actual care and the cost of the insurance will sink accordingly. As I have stated in the past, there are a number of things that can be done to help reform insurance. However, the vast majority of the problem lies in the cost of the actual healthcare. Remember, insurance is a product designed to help us pay for another product that we cannot otherwise afford on our own. The other product in this case is healthcare and those costs continue to spiral out of control.

The government can play a strong role in helping those without insurance however this bill is so far overreaching that it will destroy all of the good things surrounding our current healthcare system. As a society, we have not even seen the impact of this bill and will not see its impact until it’s too late.

America is a country with a short attention span and as a direct result some of this debate has left the consciousness of our citizens. Hopefully, Richard Foster’s statements will serve as a wake-up call to big trouble that lies ahead.

Have a great day!

Chris Garlasco

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