Question

his week’s readings describe the Affordable Care Act. One of the more significant changes in the Act was the elimination of the pre-existing clause. The act prevents payers from refusing coverage to patients with pre-existing conditions giving these patients a better chance at affordable coverage. While this is a positive change for patients, it presents a problem for payers. Under the ACA, payers are not permitted to charge higher premiums for patients with existing medical conditions, leading these companies to incur significant losses on paying for these patients. What suggestions would you provide to minimize the financial problems of providing coverage to patients with pre-existing conditions?

Answer 1

INSURANCE IS AN INEVITABLE FACTOR NOW A DAYS. SO THAT INSURANCE BUSINESS IS GROWING FAST. DUE TO COMPETITION INSURANCE WILL READY TO TAKE RISK AND EXPAND AREA OF OPERATION.

BEFORE PROVIDING INSURANCE ,THEY COULD STUDY THE CUSTOMER WELL. THIS IS TO ENSURE THAT THE CUSTOMER IS FREE FROM ANY PRE EXISTING HEALTH PROBLEMS. IF THEY PROVIDE INSURANCE COVERAGE TO SUCH AN INDIVIDUAL ,IT MAY LEAD TO FINANCIAL BURDEN. SO MOST OF THE INSURANCE COMPANIES REFUSES TO PROVIDE INSURANCE COVERAGE UNDER PRE EXISTING CONDITIONS

       SUGGESTIONS TO MINIMIZE FINANCIAL BURDEN

• INCREASED AMOUNT OF INSURANCE PREMIUM WILL REDUCE THE RISK FACTOR.
• OFFER ONLY SHORT TERM INSURANCE POLICIES. SO THAT THE RISK WILL BE MINIMUM IF THE INSURED DIE .
• CONCENTRATE ON PROVIDING HEALTH INSURANCE ONLY, RATHER THAN LIFE INSURANCE IN PRE EXISTING CONDITIONS
• PROPER FOLLOW UP AND MEDICAL CHECK UP SHOULD BE CARRIED OUT TO GET AN IDEA OF THE PRESENT SITUATION OF INSURED.
• INCREASE AND CONCENTRATE ON GIVING LONG TERM INSURANCE COVERAGE TO HEALTHY PEOPLE.IT WILL HELP THE COMPANY TO BALANCE ITS FINANCIAL RISK.
• GOVERNMENT SECTOR SHOULD TRY TO CONCENTRATE ON PROVIDING INSURANCE TO PRE EXISTING CONDITIONS.

THESE ARE THE SUGGESTION RECOMMENDED TO REDUCE RISK IN PRE EXISTING CONDITION. HOW EVER ,COMPANIES MAY NOT READY TO TAKE HIGH RISK POLICIES, BECAUSE THEY ALSO TRY TO MAKE BENEFIT FROM THEIR BUSINESS .

THANK YOU