YOU ASK:

I heard that my family will enjoy savings of around $2,500 under the new health care reform law. How will this happen?

WE ANSWER:

Under the new health care reform law, the health care system will become more efficient and access to medical insurance will become universal. The health care reform will also work to increase competition among the various players and "cutting the fat" on premiums. Underwriting costs and non-medical expenses will be limited so that premiums are more or less controlled.

The savings that will be gained with the changes will result into a savings of around $2,500 for an average family, like yours.

Here are the ways that the new health care reform law will provide the savings:

  • Strengthening of preventive care. Insurance plans will be required to include preventive services. This way, the occurrence of disease is minimized, specially for chronic conditions.
  • Efficient healthcare IT system. With a stronger coordination using an improved IT system, the reform hopes to do away with wastes brought about by unnecessary procedures (such as tests done more than once, errors in treatment and additional days spent in the hospital).
  • Increasing the competition among the health insurance providers and pharmaceuticals. The bill aims to control abuses and monopolistic practices that tend to jack up the prices of medical services and insurance premiums.
  • Improving people's access to insurance. With more people having health insurance, institutions will not be forced to pick up the tab of uninsured persons who get treated in the hospital and yet are unable to pay.  These expenses end up being paid for by people who have insurance by way of higher premiums and charges.
  • Reinsuring for catastrophic cases. By reinsuring catastrophic events, premiums are considerably reduced, without sacrificing the level of coverage.     
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