Insurance Regulation--He Got it Right for Now

Pres. Obama is about to roll out a proposal to address the regulation of some elements of insurance and of large financial institutions. Fortunately for all of us, the proposal will leave the regulation of most insurance largely to the States, where it historically has been and should remain. There will be an increased Federal presence with other financial products which, if left to their own devices, could have negative national economic effects. Although it looks like Mr. Obama's proposal may leave the door open to greater Federal insurance regulation down the road, we can hope he will learn more about insurance, and its regulation, during the rest of his term and leave it, and us, alone.

Overall, the States have done a very admirable job in regulating insurance. The exceptions have mainly been when States have tried to over-regulate (Florida??), and stable insurance companies cease to write new business because they cannot get approval for actuarially sound rates for the risks that they undertake. When the market then gets "hard", scams (fake insurance companies) often surface that are ill-capitalized, not designed to provide the protection they promise, and the consumer ultimately loses. Agents also lose, as in their desire to help customers obtain insurance, they fall victim to the scams.

Health Insurance Changes--Some Effects on You

Florida Gov. Crist signed legislation that allows doctors who are not listed medical providers for a specific preferred provider organization (PPO) to still offer care and be paid directly by the PPO. The doctor would be paid at the PPO-scheduled rate for the procedure performed, and, in theory, could bill the patient for the difference between the doctor's standard fee and what was paid by the PPO (so-called "balance-billing"). If the balance remains unpaid, collection agencies could be the next step.

Was the timing of this really good, given levels of downsizing and unemployment?

Comments are welcomed.

Debut

All,

It is June 8, 2009, and after a great deal of thought (and apprehension), I dove into blogging.

I plan an approach that will be a little different from that of many other blogs that are mainly devoted to chat. Among other things, I hope to assist people in figuring out the complexities of daily life, breaking down complicated issues into small parts (they are easier to figure out that way), and intervening in disputes if requested and expressly authorized to do so (there may be a fee connected with these services, which we will discuss and agree upon). Therefore, please feel free to ask question; I will attempt to post my suggestions soon thereafter.

I may also periodically discuss items in the news and try to "translate" the competing sides to make them more understandable.

Please do not interpret anything written in this blog as a substitute for, or as legal, medical, or financial advice. That which is written here is solely offered at face value in an effort to assist readers with another point of view.