InsuranceThought — Blogs About Insurance

Talk of “health insurance reform” is everywhere these days, but all the terminology involved can be quite confusing. If you feel you need a bit of a lesson on the definitions of healthcare insurance reform terms, the following may help:

Fee for Service – this is how the doctors get paid. Each service the doctor provides has a specific fee; this “fee for service” healthcare model has been criticized by those advocating healthcare reform.

Public Option – a proposed government choice for healthcare insurance. This is a part of the larger bill to overhaul the healthcare system that President Obama proposed in his first year of presidency.

Insurance Exchange – the Obama administration’s proposed way of helping with health insurance competition and health insurance reform. The new program is a key component in providing millions of uninsured American with health insurance.

Government Affordability Credits – credits being used to help Americans afford healthcare coverage in the health insurance exchange. The affordability credits are a way to help individuals afford the cost of mandated insurance.

Interstate Insurance – the selling of insurance across state lines. Congress has proposed interstate insurance since 2005; it is still a strong selling point for changing how and where Americans can purchase their health coverage.

Mandated Health Insurance – the requirement to purchase health insurance. This term has been used most often in the new health insurance reform legislation put forth by the Obama administration.

Pre-existing Conditions – having health issues prior to shopping for insurance. This makes finding an affordable policy a difficult task for many Americans.