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How Insurance Companies Benefit From Health Regulations Research Paper

Interest Group

The insurance industry is a major interest group in healthcare (Hyman, 2007). In the United States, the industry is represented by several trade associations, including the Blue Cross Blue Shield Association and America's Health Insurance Plans. The insurance industry lobbies for favorable laws and regulations, and it provides significant campaign contributions to lawmakers. The industry also funds research and public education campaigns.

In recent years, the insurance industry has been a major opponent of healthcare reform initiatives. The industry argues that reform would increase costs and reduce competition. The insurance industry has also been criticized for its role in rising healthcare costs. Critics argue that the industrys profit motive leads to waste and inefficiency. They also assert that the industrys influence prevents Congress from enacting meaningful reforms. Overall, the insurance industry is a powerful interest group that exerts significant influence over healthcare in the United States.

Because the insurance industry is a big interest group in healthcare, and it has been for decades, Hyman (2008) spends much of his article exploring how there is such a big for profit motive behind its interest in healthcare. One key area to note in the article is the area of medical underwriting: Commercial insurers may use medical underwriting and risk rating to classify people. Medical underwriting, used primarily in individual and small group policies in the United States, avoids insuring specific individuals or groups for non-fortuitous risk (p. 223). In my opinion, the role that insurance plays in healthcare is too often ignored: I think critics are wrong when they say the insurance interest groups dont want reform. I believe these groups do want reformjust the kind that benefits their bottom line.

References

Hyman, D. A. (2008). Health Insurance: Market Failure or Government Failure.Conn.

Ins. LJ,14, 307.

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