Instead of blaming the health ins company for their coverage. Should we be blaming the states Dept of Ins?

Before a company can sell insurance in a state, the plan has to be approved by the state's department of insurance. I used to work for Transamerica compliance department. When the plan is submitted it the state approves or denies it. So, I'm asking are we blaming the wrong set of people for crappy insurance policies? Health insurance companies are only doing what the state is allowing them to do. If the states departments were doing their jobs, would that help out the sitiuation? Are we blaming the wrong people.

4 Answers

  • 1 decade ago
    Favorite Answer

    No. You should be blaming the politicians who have taken thirty pieces of silver from the (un)insurance companies to keep the system as it is. If it was not for that, the USA would have the health system it deserves.

    I do not understand why so many Americans have fallen for lies about healthcare in the USA, abroad and also the planned reforms [1]. I mean, if the healthcare system in the USA is so good, why have no other nations taken it up? Could it be due to the following facts?

    FACT - the USA spends more on healthcare PER PERSON than any other nation on the planet [2].

    FACT - the US has higher death rates for kids under five than western European countries with universal health coverage [3].

    Or if the US healthcare system is run so well, why not run the fire service like the healthcare system? [4]

    Maybe that is because in the USA, insurance companies push up costs, buy politicians and refuse to pay claims that people pay for [5]. (Look up Wendell Potter on YouTube to hear more if the link below is too long.)

    Obama wants to make insurance cheaper, stop insurance companies from refusing health coverage to those with pre-existing conditions, and make sure they pay out when they are meant to [6], a system similar to that which works in Taiwan [7]. He debated this before he was elected [8].

    Is it right that a dead American four year old would have had a better chance of life if they were born in Canada, Cuba, Germany and so many other industrialised nations with universal healthcare?

    If you think my arguments are wrong, e-mail me with proof. But if you can not, let Obama try to help America. If he fails, vote him out in 2012.

  • Elana
    Lv 7
    1 decade ago

    To some degree, yes.

    However, the state departments are in turn implementing the laws that our government makes.

    I don't particularly blame the insurance companies for trying to make a profit - I *DO* blame the current regulatory world for allowing them to do what they do.

    Remember, if company A tries to play nice and company B doesn't play nice, company A will probably end up going out of business because competition is fierce. If the law allows an insurance company to practice a morally bad but profitable tactic, they're pretty much required to do it to stay in business.

    This is the nasty little secret behind capitalism. Generally, yes, it works. Competition makes companies better in the long run - but "better" in this case means "more able to survive competition", not "more compliant to what people actually want."

  • Anonymous
    1 decade ago

    Not true because those Departments are required to operate under their respective state laws which can differ dramatically but they can't lower the cost, etc. ... its simply a "yes or no" deal...does it comply or not...there is no fairness clause or any real substantive reviewing process involved. We need more effiective laws that can give these Departments teeth...

  • David
    Lv 7
    1 decade ago

    there,s enough mud available to thoroughly coat all participants in this messy process. there are no innocent babes in this business.

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