Article Review: Health Care Evolved From the 1920s (Article Critique Sample)

The articles discuss how health care evolved from the 1920’s when insurance was not viewed as a profit making venture to today’s view of making money out of insurance premiums as well as how the costs for premiums. Historically, premiums were set at the same rate regardless of medical conditions and no individual was denied access to medical treatment based on pre existing medical conditions. The system however became dysfunctional to the extent of denying cover to people with medical problems when health care was seen as a money making venture. This has elicited a lot of debate leading to legislation that deals with the antitrust exemption of insurance companies being brought before the senate. It is argued that this step will lead to lowering of insurance premiums by repelling the McCaraan – Ferguson Act of 1945 which will lead to insurance companies sharing historical data and hence lower premium rates. However, the congressional Budget office foresees that repealing the antitrust exemption would barely have a noticeable effect as concerns pricing. Another aspect that is discussed that could lower premiums is the loss ratio approach that would require that “at least 85 cents are spent by commercial insurers out of every premium dollar on health claims for large group policy holders with the remaining unused being used for administrative expenses.
In my view none of the presented cases is solid enough to ensure the reduction in premium costs on its own. Premium cost reduction will be achieved if states and the federal government prohibit discrimination as a reflection of the “old Blue cross” by implementing the antitrust exemption and bringing consumer protection actions against insures and introducing minimum record ratios.
References
Cohn, J. (2010). How Blue Cross Became Part ...