Should Health Insuranuce Industry Be Regulated?

IntroductionThere exists substantial amount of literature regarding the advantages and disadvantages of regulations in the USA rescue , the initial attempts to approximate the general impact goes back to the mid-seventies Basing on this work , it is understood that regulations inflict a meaning(a) burden on businesses as well as the consumers in the USA According to past estimates , the cost of regulation r each(prenominal)ed the 1 trillion mark in 2004 (Krugman 2006 ) with more than 185 millions of Ameri croups being cover by wellness insurance policy , the question of whether the wellness insurance perseverance should be frustrated or non has been asked by different stakeholders . However , this question remains controversial since the cost and benefits of health regulation are debatableDebate on whether the federal governance should regulate the health insurance manufacture or not is not new in America among the USA politicians or even amongst policy experts , reform advocates insurance companies and the common man . My view on this subject is that the government should not regulate the health insurance industriousness since health insurance industry needs to regulate it self in accordance with the marketing forces to ensure that no external interference distorts the industry . To further support my position I allow for pose some(prenominal) arguments as to why the government should not regulate the health insurance industry . I shall discuss several points in specific which are underlined belowCostsIn many occasions , give tongue to-level regulations in an industry have resulted being an obstacle to competition which in human activity hurts the final consumers . Previous Academic studies have shown that the markets which are left field to compete amongst themselves without regulations serve the consumers better than those being regulated (Krugman , 2006 . In every case , competition has resulted in reduced prices eon the quality remains equal if not improved .

In a study carried out by on benefits of deregulation , it was established that , deregulation provided consumers with cost benefits amounting to almost 50 one thousand thousand each year (Robert and Jerry , 1996Regulating health insurance industry will also result in considerable compliance as well as administrative expenses . The health insurance industry , for instance is being regulated through agencies in each state of America . The usual size of staff for the health insurance organizations was about 300 in 2004 resulting in an approximated cipher of about 20 .2 million (Krugman 2006 ) More so , the health insurance companies which take part in different state markets are forced to apportion huge resources to deal with the issues raised(a) by the state regulatory bodies and state lawmakers . If the industry can regulate itself and political motivated regulations removed , the expenses the companies incur as a result of these regulation will be greatly be reducedEver since the 70s , industry analysts have been rethinking their views regarding economic regulations in health insurance industry . The common viewpoint among all economists in the industry is that regulations lead to poor services to the consumers and that the possible benefits of not regulating the industry can be substantial (National tie-up of Independent Insurers , 1995Joskow (2003...If you want to get a full essay, prescribe it on our website: Orderessay

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