Medicare vs. Insurance Companies

There are many people today that believed Medicare services are superior to any other form of health care. The realities are that it is not more superior. Medicare is owned and operated by the government. Perhaps if this were left to the independent insurance carriers it would run more efficiently, but this is not the case.

The Medicare insurance program today is going broke because there are far more monetary benefits given out, than there is financial backing coming in to the system. This in fact, is why the entire health insurance program is unable to sustain for much longer.

Many are under the assumption Medicare is a good health insurance program because once an individual reaches their sixty-fifth birthday every thing imaginable is free for the asking. Medicare is not required to pay for a new pair of glasses, nor is it required to pay for a wheelchair. Dental benefits are virtually non-existent, yet so many are surprised when they file a claim and receive a notice of rejection.

The most recent addition to the Medicare program was the prescription drug coverage, but how many realize the millions that are hurt by this? A simple prescription for eye drops for example, cost forty-six dollars until the health care bill for prescription drug coverage passed. The cost for the same prescription eye drops rose to two hundred forty five dollars over a six-month period.

The health insurance companies were forced to comply with the new ruling along with the few drug companies that remain in this country. The insurance companies are not at fault in this instance. The cost is being driven up because of fewer drug companies. Today in this country, the demand for certain prescription drugs are driving up the cost.

The many changes with government rules, laws, and regulations have forced many drug companies to move their business to foreign shores. Many of our prescription drugs are processed outside of this country, like France. Remember, the health insurance industry is still a business and operating costs are going up every year.

The health insurance companies have payroll to meet along with the many requirements that must be fulfilled, legislated from the government. How are they supposed to meet their payroll obligations and their tax obligations without raising the cost of health insurance to the general public? Unlike the oil industry, the health insurance companies are not making the profits. In fact, the standard profit still remains at about two or three percent after all overhead costs are met.