Tuesday, March 16, 2010

My take on Health Insurance

     Since I have been selling insurance, the most popular question people ask is, "What is going to happen when/if the Health Care Reform bill is passed"?  To them I reply I have no idea because no one can definitely say.  I have heard many folks attempt but it still leaves so many unanswered questions.

     Even my sponsor Larry Baker of the Alpine Agency says the best of the best doesn't even know what to expect.  There are just too many variables to consider and it is just too much legal jargon that the folks in Congress can manipulate it to suit their future needs.  The facts remain that when taking on something as big as Health Care, there are no right or wrong ways to approach it.  Some decisions will make many angry and other will bode well for others.  Here we'll look at some possibilities to think about.

    Do you remember a few years ago when the Real Estate bubble burst.  The market was saturated with bad mortgages and big banks had their fill with as many of these "bad" loans as they wanted because mortgage companies were giving these away to anyone with a pulse.  Several of these banks failed and many had to be bailed out.  Well some say that what led to the bad mortgages was when congress made way for them by allowing Fannie Mae and Freddie Mac (government home mortgage lenders) to write semi quality slash sub prime business.  This was done during the Clinton administration and the reason they used was that, "everyone deserves the american dream of owning a home".

     Whoa hold on a minute.  I love the respect and props to America, the land of the free, its history of free men and all but everyone doesn't deserve a home.  If one were to become a home owner you must demonstrate responsibility and discipline not only over your finances but in your community and family.  So let's say I give you an opportunity to own a home but you didn't prove your responsibility with your job and money like yours neighbors did.  What happens is the folks who did deserve the American dream suffer at the market slump that their neighbors foreclosure has caused and no one wins.

     This brings me to Health Care Reform and some are saying everyone deserves health care.  If Washington passes this reform bill, that eerily sounds like the changes the gov did to Fannie and Freddie by regulating a free market system, do you think we could see the same kind of market response in the insurance sector as we did in the housing market?  Keep in mind the insurance industry is one of the few strengths of the big banks now and the free market system has allowed for this to happen.

     We do need change.  There is no getting around that.  Nearly 50 million people do not have health care coverage and for America that is not acceptable.  I don't like this bill or the reasons Washington gives to force us into another mess.  My prediction is that if the bill is passed, it could ignite a fervor of activity for insurance companies.  We will see a surge of business but then maybe 10-15 years from now, companies will start dropping like flies because they cannot keep up with the prices the government is demanding and yet again we will see the market affected by big gov.

     So there is my two cents but if the bill is passed I should be making a little more than that.  Haha thanks uncle Sam.


Rachel Vincent said...

Very well put! Makes more since to me. I've added you to my Google reader!

Brandon a.k.a. B-Nice said...

I know thanks feel free to comment anytime. I'm actually trying to create a little blog that people can get info on all the health care stuff. And then add all my interests and see what happens.