In the weeks since the new health care bill was signed into law, it has become apparent just how confused some segments of our society are. Health insurance companies in Arizona and elsewhere are being bombarded with phone calls asking how to apply for the, “free health insurance.” https://higginscompanies.com/health-insurance/a-few-thoughts-on-health-insurance/
Of course there is no free health insurance, at least not now, and certainly not for everyone. But for those that will receive, “free,” coverage in 2014, the rest of us will pay handsomely. The new politically correct term for this is, “Social Justice.” It has a nice ring to it. Those that are financially comfortable helping out those that are not, who would be against such a thing?
As I have mentioned before, when a person does not have a financial interest in their own health, the system will be over-utilized. Over utilization will cause premium rates to increase for the rest of us, it is that simple.
It is my opinion that there is a very good reason why many of the uninsured are uninsured… they choose not to be. As an example, Arizona will help pay for a sizable portion of the premium for the uninsured individual or family, and even small businesses receive the same financial help. My own experience has been that of the dozens of folks that I have dealt with, and that qualify for the program, only one of them purchased Arizona health insurance. They dropped their new policy weeks later. When including the financial assistance, the average premium ranged from $0-$100 a month for a family. My point is that it doesn’t matter what the cost is if the consumer doesn’t see value in the product, no matter which company is offering such service. Those that are calling the health insurance companies asking about the free medical insurance in Arizona are already insured in most cases. They see value in being insured. It is their choice. And this is what we are about to lose with the health insurance law, choice.
Michael Higgins
602.405.8769
An Arizona health insurance broker.