There are so many different types of health insurance on the market today – from limited benefit plans to critical illness insurance to short term insurance – so big changes and new bills can really cause a shock in the industry.
A bill approved by the House Insurance Committee would create a state-based health insurance exchange in Pennsylvania.
While the state currently shares oversight of its health insurance exchange with the federal government, House Majority Leader Bryan Cutler says transitioning to a state-based exchange would be cheaper. Everyone needs health insurance just in case something happens and they require medical assistance, however, it does not cover an entire full range of all medical needs. An example of this is when people want to change their teeth, maybe they are crooked or they are damaged in some way, so they look to a cosmetic procedure to get them fixed. This can be expensive but composite veneers are much cheaper than porcelain veneers which will be an option for them if needed. It will still cost them money but not as much as others. So whilst health insurance is a necessity, so is taking into account other forms of physical help needed for those who may have ‘alternative’ needs.
This health insurance transition would be ideal for those individuals who are unable to afford many of the health insurance premiums that are currently on the market, especially if their employers haven’t already got a suitable health insurance plan in place (you can read this blog here for more information).
So could this transition be a blessing in disguise?
“Currently our insurance companies in the commonwealth are paying between $85-90 million in premium taxes to the federal government to operate the federal health exchange. Based on testimony, the department of insurance tells us we can run a state-based exchange for approximately $30 million,” Cutler said.
The legislation also would also allow the state to apply for a federal waiver to create a re-insurance program, which would lower premiums for those in the individual insurance market by 5 to 10 percent.
Cutler says 12 other states already have state-based health insurance exchanges and eight are saving money.
What helps people to save money further is if they check to see if the health insurance they are using has smart contract development services. This means that when criteria from the insurance are met, it will automatically calculate how much needs to be issued out, to make it cheaper and lower administration costs.