Posted by
TheRationalRight on Saturday, April 18, 2009 12:36:40 PM
I am one of the underinsured.
I found that out recently. I never suspected it. But when my son’s school sent home a note reminding us that it was time for additional vaccinations, I remembered that there was a clinic funded by the state that inoculates children at no cost to the parents. I did not hesitate to take him there. Paying for something that is offered for free is economically irresponsible.
I was asked to fill out forms stating why I wanted my child to receive the shots at the free clinic rather than paying for them at a doctor’s office. I had only a few check-box choices for my answer, and the only one that fit my situation stated that I am underinsured because my health insurance does not cover vaccinations.
Underinsured??? Really??? That’s news to me!!!
Here’s a bit of a reality check.
Scenario 1.
My health insurance does not pay for services that are otherwise provided free of charge to their policyholders. Their claims experience is unaffected by this decision, and their administrative costs remain unchanged. Correspondingly, my premiums are unaffected by this decision. I incur no additional costs by utilizing the free clinic.
Net result: Costs are unaffected for insurance company, costs are unaffected for covered policyholders, and benefits are no different than at a private provider.
Scenario 2.
My health insurance pays for additional services that are otherwise provided free of charge to their policyholders. Their claims experience increases, as do their administrative costs. Correspondingly, my premiums increase. Also, I incur additional expenses by paying at least a portion of the cost of these additional services, either through a co-pay or a deductible/coinsurance plan.
Net result: Costs increase for insurance company, costs increase for covered policyholder, and benefits are no different than at the free clinic.
So why is my insurance company vilified for being economically responsible to their policyholders and their corporate stakeholders? Because they’re an easy target. Insurance companies – and corporations in general – are expected to follow the example of our federal government. They are expected to spend more money regardless of economic circumstances in order to make life easier for their customers and employees.
Perhaps if they acquiesced, then the rest of the world would like them better. And in a short time, they would be asking for a federal bailout because of their irresponsibility. And they would again be vilified.