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Entries in Ron Williams (1)

Tuesday
Jun102008

Health insurance a societal obligation

Forty-five million uninsured Americans prompted the Senate Finance Committee to discuss ways to reform health care, listening to recommendations that could help to provide insurance coverage to the uninsured. According to panelists, the uninsured are shut out of the system due to increasingly high health care costs, high insurance rates, and partial coverage.

Ron Williams, the CEO of Aetna, told the committee that lowering insurance rates will require lowering the cost of health care since the price of insurance reflects on the cost of treatment. Williams also said universal participation in health insurance is necessary to lower prices and help those in need, comparing societal assistance in health care to food taxes that help feed the hungry. He noted that patients seeking coverage after being diagnosed with a serious illness is not insurance but in fact a way of financing treatment, suggesting that measures be taken to combat reactionary purchases of health insurance. Williams also said that grouping people by methods other than risk factors would allow for an even distribution of healthy and unhealthy and prevent costs from skyrocketing due to an influx of customers needing high remittances.

Mark Hall, a professor at Wake Forest University, agreed with Williams’s idea of grouping customers into pools without determining risk factors. Hall said that one percent of the American population uses almost 25 percent of federal expenditures on health care while half the population uses four percent. Hall said that pooling would allow natural statistics to have an effect on health prices by preventing concentration of the sick. Raymond Arth, a small business owner from Ohio, urged the committee to be conscious of small business owners. Arth said that small business owners desire to provide health insurance to employees but that increasing renewal figures make it difficult financially.