Health Insurance Providers California
When I pay my premium, that commits my insurer to cover my risk of incurring future expenses instead of my previously incurred expenses. The lag effect opens up the possibility that the insurer will become a hostile intermediary, working against my interests as an insured party. The insurer can profit from investing—usually in stocks, bonds or real estate—a premium payment prior to the time a claim is made to pay for a covered service. This of itself doesn’t harm the insured.
Yet from this fact it follows that the amount by which the premium rises to cover increased provider charges can also be invested to make a profit. Insurers derive from this the perverse incentive to allow providers’ charges to rise; for once those charges rise insurers have an excuse to raise premiums, thereby providing them additional funds to invest.
Wouldn’t competition over premiums among insurers be strong enough to overwhelm this perverse incentive
Fast and Free Health Insurance Quotes
| In just 2 minutes, you can get instant quotes from over 175 health plans regardless of health conditions, tobacco use, age, or employment. Our online quotes and national network of local insurance agents, will help you find the right plan and save money. Your information will be kept safe and secure and will only be used to provide you with quotes. |
| If you are Medicare-eligible a representative will call or email you about Medicare Supplement plans even if you are on the do not call registry. By clicking "Get My Quotes" and seeking a quote request I authorize and agree that up to four insurance companies or their agents and partner companies may contact me using this information or to obtain additional information needed to provide quotes where permitted by law. I acknowledge that I have read and understand all of the Terms and Conditions of this website and agree to be bound by them. |