Thursday, March 15, 2007

Stripping Down

Saying it will help control costs, the state House voted Tuesday to let insurance companies offer stripped-down health plans to individual policyholders.

Stripped down plans lower costs.

Actually, they lower premiums by shifting more of the cost of care away from the carrier and on to the individual.

Not saying this is a bad thing. Just depends on what is being stripped.

He said insurers could still offer full-blown policies which cover all situations. But Adams said some people don't need -- and don't want to pay for -- things like contraceptives, mental health care or chiropractic services.

I am sure this will be challenged by some.

And Rep. Steve Gallardo, D-Phoenix, speculated HB 2757 would make insurance more expensive.

He said premiums will remain the same for less coverage. But those who need what would become options would be forced to pay more for those extras.

Speculated. That's a good word.

Actually, he is probably right. With health care inflation running 12 - 15% it is quite possible that stripping out a few benefits will simply hold premiums at bay for about a year on the stripped down policies, while the rest of the plans continue at a 12%+ clip.

"This bill will provide people with the opportunity to choose between a Cadillac and a Yugo," he said. "And most people are going to want something in between.""

Wonder how the folks at Yugo feel about that?

But again, there is some truth. When given a choice, and an education on health insurance choices, most folks will opt for the plan in the middle.
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