How does HIPAA help consumers by offering the ability to get coverage for a pre-exisiting condition if they show proof of creditable coverage, exhuasted coverage, etc.?
If you were to apply for a loan, your credit history will be underwritten to determine if you qualify for a loan and if so, what rate will be attached to that loan. If some states mandated that anyone who applied for a loan were guaranteed that loan, regardless of ability to pay, then where is the incentive to have good credit & pay off your loans? In such a guaranteed loan state everyone could get a loan and would be charged 18% interest.
That is an excellent point that I have pondered. If you give people the option to look after their health and not abuse the system you would hope that the majority will do so by making intelligent decisions. Unfortunately, people are so used to co-pays and group coverage taking care of them that the transition to consumer driven plans will take a few years to allow consumers to become more responsible and comfortable with their options. On the other hand, insurance companies negotiate with doctors, hospital and that information is kept top secret.
Wouldn't it be nice if health care was treated in the same way as everything else we purchase. I am a strong advocate of thinking that health insurance is a privilege, but more importantly, that it should be viewed as an avenue to protect consumers from "major" illnesses and accidents versus things like wellness and the occassional office visit.