Understanding the concept of costs of Health Care


There has been a constant voice of effective health care cost. Affordable health care would mean more and more people are covered by it. Thus, Obamacare was introduced to reduce the cost of health insurance. This has brought jitteriness among top health insurance companies and brokers. On the other hand, people are demanding further lowering of insurance and health care so that everyone is covered.  So while so many factors are working in tandem, is healthcare cost so easy to evaluate? Let us understand all the stakeholders here:

  1. Consumers:  they are the real users of healthcare services and but healthcare insurance. If healthcare services are cheaper, than healthcare providers like doctors, nurses, pharmacists, etc. would lose. However, then healthcare insurance will become more affordable as bills will come down.  On the other hand, if health care costs are kept same but health insurance policies cost is reduced, then insurance carriers and brokers will lose out.
  2. Health care providers: Healthcare providers include Doctors, nurses, pharmacists and other practitioners like chiropractors. They provide health care and a reduction in health care costs directly challenges their earnings.
  3. Insurance carriers: Insurance carriers provide insurance policies. They pay the insurance money when a customer needs. Lower insurance premiums will reduce their already dwindling profits after Obamacare.
  4. Brokers: Insurance brokers are the middleman who helps people get the best insurance policy. Already their profits and margins are being reduced due to the rise of the internet and more awareness and then Obamacare. Moreover, they are already complaining about reduced margins on insurance policies.

When Obamacare was introduced, it was a simple policy that helped health insurance reach more and more people. While customers were happy with it as it was reducing the medical costs, however, insurance carriers and brokers were unhappy as their business was being affected. In California insurance covered California Obamacare.  Obamacare has raised mixed reaction as some feel that it is improved in the reduction of cost but some are advocating going to the old system as that would bring joy to obamacare health insurance california carriers and brokers.

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