Saturday, October 15, 2011

Insurance for Peace of Mind – Whose?

Nassau County just announced they caught many individuals who defrauded Medicaid out of hundreds of thousands of dollars! The money will have to be covered by those of us who have not broken the law since the bills must be paid.
In discussing the case County Department of Social Services Commissioner John Imhof stated that “It’s unconscionable that individuals try to cheat the system and try to jeopardize benefits intended for the truly needy.”
He’s right, that’s purview of big business and large corporations!
In this case the people who committed the crimes were caught and will hopefully be prosecuted to recoup the agency’s losses. At that time the County may be paid back although I am not going to hold my breath.
But this brings up an interesting issue.
When an insurance company sells a policy to a customer they do so with the understanding that they may have to pay a claim at some time in the future.
Naturally they are in the business of making profits so they try to only insure customers against nearly impossible happenings.
Occasionally they screw up and lose.
Or do they?
Whether the payments are for legitimate claims or for fraudulent ones the companies will increase their premiums across the board to cover them, thus ensuring them an equal if not larger profit year after year.
In America we have the free enterprise system.  Companies are allowed to do business any way they see fit as long as they don’t break the law. So it is up to the individual to decide with whom they wish to deal when it comes to insurance.
But much insurance is utility-like in nature while some are even mandated such as auto insurance.
When the government declares that you must have insurance they also must regulate the companies that offer that insurance lest greed take over and the captive customer be fleeced.
But the truth is no matter how large a profit these companies report if they are hit with a claim they will raise their rates in order to recoup those losses.
And if those companies are defrauded out of money by a falsified claim they will raise the rates on all of their customers so as to not lose one dime!
Do not get me wrong, I am against those who knowingly break the law to defraud any individual or company, even insurance companies.
But I do not condone spreading the pain among the innocent bystanders!
If an insurance company writes a policy with a customer they are essentially making a bet that they will not have to pay out any claims. It behooves them to turn down any claims or at the very least fight them and demand more and more proof of validity in the hopes the customer will give up and go away.
In the event the insurance company loses the fight and must pay they should be forced to do so out of their own pocket and not the pockets of the people who had absolutely nothing to do with the entire process in the first place.
We the people do not receive gifts or bonuses from big insurance companies who report obscene large yearly profits.
We do not reap the benefits of all those claims they deny.
So why do we receive a bill when those profits don’t meet their desired number?
Auto insurance companies are not the only ones who spend fortunes on ad campaigns aimed at brainwashing the public into believing that insurance fraud must be paid for by the innocent among us.
You pays your money
And you takes your chances
If I gamble in a casino and lose from whom may I claim that money back?
If an insurance company is defrauded they should go after the person or persons who committed the crime. It is not only their right it is their duty.
I would even offer to help them, for a price. But I am not nor should I be held accountable for their losses!

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