Private exchanges vs. the alternatives

By The401Kman

The 401K Man.com


Everyone knows we have health care on the way through the PPACA, or what is more commonly known as Obamacare. Many of us have seen the costs of health care insurance dramatically increase over time. How expensive health care can be is usually the first thing I hear when I'm speaking to someone or I'm helping someone out with information about coverages available.

The sad fact is most people are expecting the law to level off or lower costs for health care insurance. This is what we all have been led to believe; it is the major selling point we have been given. Yet it is seriously in doubt. Yes, a health care plan was sorely needed for all of those poor unfortunate people who have existing conditions. This law will also help those who are are not always financially capable or covered by insurers. It will also be the law to cover everyone in 2014 or suffer penalties, which will truly be expensive.

The main point I want everyone to ponder was recently brought to my attention quite clearly. Do you really believe health care costs are going to stabilize with that many more health care pools of insureds? If costs have been going up due to more advanced technology and newer methods of medicine that enable people to live longer, how will these advancements continue to be paid for?

Yes, larger numbers in groups will lower costs, according to estimates by actuaries. Insurers have operated under this method for decades. Here though, the circumstances are quite different to start out with. You cannot possibly expect more people who also may already be worse off in their health conditions to live longer just to keep your health care costs level or lower.

Another sad fact is that everyone is expecting this miracle of health care from the government to be the magic elixir to solve the ailing American public with a group of severely ill or chronic patients who have been refused health care insurance. We simply must not sit and think that government involvement with their health insurance exchanges will really and truly allow the cost to be competitive with private health insurance exchanges. The coming health care exchanges that will be subsidized by the federal government are in their formation phases now for many states and will vary dramatically according to early reports.

While it is yet to be seen how affordable they actually will be, for many, it is the right time to look for an individual or private exchange before you are surprised by the soon-to-be-costly government alternatives.