State Regulations and Health Insurance Premiums Analytical Essay

Looks at the effects on health insurance premiums of new regulations of the health insurance industry by some state.
# 150564 | 1,895 words | 6 sources | MLA | 2012 | KE

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This paper explains that some states have enactment several measures, such as community, imposed guarantee issue and 'any willing provider' policy regulations, that were to limit premiums for health insurance; however, this action does not seem to have limited benefits for either consumers or insurers. Next, the author relates that these new limitations that were to have corrected some specific issues, such as rising healthcare costs or accessibility to healthcare especially to the poor and to high health-risk individuals. may have some short term benefits but in the long term could result in the collapse of the health insurance industry itself. The paper underscores that comparative studies have shown that consumers in regulated states have no clear-cut benefits over those in unregulated states and that regulatory measures are counterproductive.

Table of Contents:
The Regulations
The Current System
The Impact

From the Paper:

"On the other hand, the positive results may be short-lived. According to New, offering low cost insurance covers to the high health-risk individuals or older people, without screening out special medical conditions, will only happen at the expense of the young and the healthy. For the companies to meet the cost, they will have to strike a balance between income and expenditure. This means that, the healthy and the young, who have no complicated health conditions, will pay more for services they are not enjoying. The surplus money brought in by the healthy, will then be used by the high health-risk individuals who will spend more than what they bring in. This is true because companies cannot offer what they do not have. The resulting effect in such a case would be obvious; the young and the healthy people will withdraw from the premium business. Due to the absence of these key players, there will be mounting pressure on premiums and those left behind may not be able to sustain the sector.
"Interestingly, the people who remain in the insurance business are the poor, the high health-risk, the sicker, and the poor; ironically, these groups are the same people the state seeks to protect."

Sample of Sources Used:

  • Davidoff, Loeb and Blumberg, Nichols. "State Health Insurance Market Reforms and Access to Insurance for High-Risk Employees." Journal of Health Economics 2005, 24(4); 725-750
  • Frick, Keith. "Consumer Capital Market Constraints and Guaranteed Renewable Insurance." Journal of Risk and Uncertainty 1998, 16(4); 271-278
  • Hadley, Joel and Reschovsky, Coel. "Health and the Cost of Nongoup Insurance." Inquiry 2003, (4)3; 65-68
  • Herring, Bradley and Paul, Mark. "The Effect of State Community Rating Regulations On Premiums and Coverage in the Individual Health Insurance Market." National Bureau of Economic Research 2006, 32(6); 23-26
  • New, Michael. "The Effect of State Regulations on Health Insurance Premiums." The Heritage Foundation 2006, 13(2); 1-18

Cite this Analytical Essay:

APA Format

State Regulations and Health Insurance Premiums (2012, March 13) Retrieved June 03, 2020, from

MLA Format

"State Regulations and Health Insurance Premiums" 13 March 2012. Web. 03 June. 2020. <>