US Health and Life Insurance in the Next 5 Years

Life Insurance

Life InsuranceTaking out life insurance is an important decision that provides your beneficiary with a benefit at the moment of your death.

However, when it comes to thinking of the future, health care is a factor that does not only contribute to your wellness, but that will be connected to changes in life insurance terms now that the Obama administration is moving forward with the health care law. The health care law that presumes to provide equal opportunities to all American citizens to receive medical attention and get insured regardless if they have a pre-existing or chronic conditions at the moment to buy insurance.

Provision on the health care law have resulted in controversy about the real benefits that Americans will receive if Obama’s initiative is approved, and how this law will affect insurance companies, since denying insurance to people with medical problems will be illegal.

The Affordable Care Act

A series of new provisions and amendments have been added to the health care law under the Affordable Care Act, which is meant to build a health insurance market in benefit of the workforce, providing them with the basics to compare health plans, and allowing all the employers to offer better wellness options to their workers.

The Affordable Care Act is a part of the Health Care Law, and not two different laws over the same matter, which is often the source of confusion when the new regulations are discussed, and this is probably the source of the polemic around this initiative. Nonetheless, the goal of the Affordable Care Act is to get all Americans covered by the same benefits, regardless of their actual medical condition, preventing discrimination by insurance companies or health care providers based on their medical history or pre-existing condition.

Wellness Programs and Reduced Costs

In the next five years, it is expected that the Health Care Law provide Americans with a healthier life, fair working conditions, and same opportunities for all to buy life or health insurance at an affordable cost. Certainly Obama’s proposal will bring changes in the health care systems, and the insurance companies will have to make these changes take place in 2014. Under the new law, insurance companies are prohibited to discriminate people based on their occupation, gender, chronic disease, medical history or pre-existing condition and, if a medical problem exists, this fact must not be determining to get them paying higher premiums.

More Reforms that may Affect Life Insurance

With the American Taxpayer Relief Act of 2012 just signed into law, exemption for estate taxes will make necessary the modification of life insurance policies that are taking out with the goal to reduce taxes that beneficiaries have to pay when an insured individual passes away. Congress is still struggling with an agreement on the tax rate that is going to apply here, leaving the insurance companies twiddling their thumbs, envisioning the future of the insurance industry. *

Fiscal Issues and Life Insurance

Starting year 2013 with a heavy load of raising debt ceiling, President Obama is now addressing at the consequences that an unfavorable answer from the Congress will bring in this matter and ongoing proposals in public health and other matters. Therefore, it would probably be until the debate on the USA debt is over that we can learn what the future of life insurance will be for the upcoming years.

Author Bio: Stevie Clapton works with > who provide great informative articles on everything with life insurance.

Please Note: This article does not reflect the opinions of Live Insurance News nor is it advice given in any way from this association.

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