Insurance companies are the modern day Robber Barons with profit being their number one priority, doing anything not to lose leverage with society or the government. The public are under the presumption, if they do not have this or that insurance, will lose everything. They pay their premiums faithfully for years, and when they file a claim, the company finds loopholes getting them off the hook. The insurance industry uses lobbyist to get laws past, tax breaks, and subsidies.
Most American's who can afford insurance are familiar with the big three – auto, home, and health. The first two seem self-explanatory – get into a car accident, or the house sustains damage the insurance company pays. In a perfect world that would be the case, but insurance companies reside in the world of profit making it difficult for the insured often dispensing less money than the policy requires.
Homeowner's insure their home because the mortgage holder demands protect for their investment. The homeowner gets the proper insurance depending on what part of the country the home is located and adds insurance for natural disasters – hurricanes, tornadoes, mudslides, volcanoes, earthquakes, and floods. Then a natural disaster takes place and if the homeowner does not have mudslide insurance; loses everything, cannot rebuild, and the mortgage holder wants the balance of the mortgage. The insurance company is the winner because of the premiums they collected.
Flood insurance is an interesting peccadillo as the government is the insurer. This insurance is a high risk for the insurance company so their lobbyists convinced the members in the House of Misrepresentatives' and the Senseless to pass a bill covering the idiots living next to the oceans. Flood insurance policies are inexpensive so the idiots rebuild with taxpayers money until the ocean claims them again.
Insurance companies were so successful with auto and home insurance policies they tapped into the health industry. The premiums were reasonable at first but the insurance companies grew with the health industry and their profits skyrocketed. It was time to branch out even further so they began offering whole life, death, accidental death and dismemberment, and cancer policies betting people would never use them. These policies became the bonanza for the industry as actuaries calculate rates based on mathematical formulas favoring the companies and not the insured. They make more profits by raising rates for people over a certain age, not covering certain diseases or tests, increasing deductibles, limiting the dollar amount on some policies, requiring primary physician’s orders to see a specialist, and employing non-medical personnel to make medical decisions.
President Obama passed his health plan to assist the people who could not afford health insurance. It took a lot of guts to fight the insurance industry and the battle is just starting. This modern day Robber Baron will fight the changes to the bitter end because they care only about their profit and not the individuals they insure.
Lobbyists examine every bill in the houses of Misrepresentatives and Senseless and if the insurance industry is on the chopping block attack with payola and gifts. Their Holy Grail is subsidies and rate increase and will do anything to protect them. The people keep paying the premiums no matter the increase because they have no choice.