State Regulated or Federal Regulate Insurance

A public policy is the body of principles that underpin the operation of legal systems in each state. In this paper I am going to talk about federal along with state policies. I will discuss each of the policies and how they are similar and how they are different. Federal and State policies are made to help keep our Country running smoothly. If there were no policies then keeping our Country safe would be a hard task. Policies are principles that are set to help make our Country operate on a daily bases. I like to think of it as rules that are set to keep our Country safe; because if there were no rules then everyone would be doing their own thing which could cause for a very disorganized situation.

Each state has their own specific unique laws established individually for their state. In conjunction with those laws that exist over the people in their specific state there are also federal laws that govern the states as well as the people who live in them. These laws that govern the people are known as state laws and federal laws. The U.S. Constitution is the supreme law of the land in the United States. “It creates a federal system of government in which power is shared between the federal government and the state governments. Due to federalism, both the federal government and each of the state governments have their own court systems (Comparing

The first national regulatory efforts in the late 1800s were intended at punishment for, and the prevention of, abuses in the marketplace, antitrust violations, and price gouging. During the 20th century, government regulation became even more extensive, focusing not only on preventing certain kinds of practices, but also requiring that certain in service standards can and should be met. And the past 50 years, more than a dozen new regulatory agencies have been shaped at the national and state government levels, following the route of new regulatory statutes. Regulatory measures contact virtually every part of our lives.

Benjamin Franklin helped to establish in 1752, what it would be the first mutual insurance company. For many years, the United States government never considered necessary to incorporate a system that would compensate their citizens in case any injury, accident or loss happen to them. It wasn’t until 1735 the first underwrote fire insurance company was created; in Charleston, South Carolina. Underwrite insurance companies are the ones, that analyze all the risk of insuring a particular person or asset and uses that information to set a premium pricing for insurance policies. But it took 20 years to create the first mutual insurance company, one in which policyholders would come together to share the risk.

The numbers of firms that produce identical products or goods which are homogenous are called market structure. Industrial regulation is the government regulation on an entire industry with the objective of keeping a close eye on the industry prices and take advantage of consumers. Rules set by government and agencies that help control the operations of businesses who may demonstrate monopoly power in their organization. Monopoly may lead to consumers being exploited (higher prices) and consumers paying way too much for a product.

The subject of insurance and how heavily the government can mandate it or not mandate it is a constant struggle in politics. There is always the question of “what kind of relationship should the government have with its people and what role should it play with businesses?” Currently, a popular subject is the Affordable Care Act (Obamacare) and it is challenging the boundaries by requiring people to have health insurance and requiring businesses to offer health insurance to everyone and anyone. Mandating insurance is a hot button subject in other areas too that we will discuss like auto insurance, workers’ compensation insurance, and professional malpractice insurance.

The purpose of the coursework is to undertake a critical analysis and an assessment of the level of competition in the insurance industry of the country of our choice. In my case, I have decided to explore the health insurance industry of the United States. One of our aims is to

Farmers Insurance opened a tiny one-room office in Los Angeles, California in 1928. The company was formed by John C. Tyler and Thomas E. Leavey in order to serve local farmers and their vehicles. The two men “knew from experience that farmers and ranchers experienced fewer risks with their vehicles and were entitled to preferred rates” (Farmers Story, 2016). Tyler and Leavey used their own money to start their company and in order to obtain policy holders, they went from farm to farm.

16–27. By regulating the State’s commerce, Congress is limiting what States really need to satisfy, their residents. Each state is different, and so are their residents. Simply enforcing a standard cookie-cutter health plan forces States to ignore their previous needs, and “budgetary challenges; Each state should be able to develop solutions that meet its specific needs” (Robert E. Moffit, Ph. D).

1. What are the most critical components of state regulation for managed care organizations? Which federal regulations also bring specific requirements for the operation of such entities? Discuss state and federal regulation of MCOs.

While researching the state of Colorado for different types of healthcare policies, the most talked about policy was all centered around the State lead Connect for Health Colorado. Colorado’s path to building this insurance marketplace started years before the Affordable Care Act (ACA). In 2006 the General Assembly passed the Senate Bill 06-208 which created the Blue Ribbon Commission for health care reform. The goal of the marketplace was to assist individuals and smaller employers to find insurance options offered through the state. There were only a few minor changes made in Colorado prior to the passing of the ACA.

Another key question is why do we have regulation? Regulation is meant to serve the best interest of the public. Regulation can serve the private interest, public interest or both. Almost every aspect of our daily life is regulated (as per Regulation: A Primer, page 1). Regulation is very comprehensive to the point that it extends to the moment we wake up to the moment we go back to bed at night. In the morning, there are regulations that dictate which airwaves are used by your radio station; in addition, food and drug agencies regulate the content of your toothpaste, soap,

The health sector is among the most important sectors in the United States economy. The government has enacted certain laws that affect the corporation’s activities and the insurance industry in general. The regulation affects competition among the health insurance companies, and the insurance industry in general.

The transportation systems in the United States have been regulated starting with the railroads in 1887 by the Interstate Commerce Commission (ICC). This was done to curtail abuse of their monopoly powers. The public where not sure how to protect them self from an entity like that since Railroads where the first large monopolies in the United States. This regulation controlled rate and prohibited railroads from the practice of charging low under cutting rates between major cities where several railroads competed, and making up for this by over pricing on intermediate points served by a that railroad only. Who could enter the railroad industry and leaving the industry was also regulated. (Wood, 2017)

Changes in tax laws, government benefit programs, and other State and Federal regulations can affect the insurance needs of clients and how agents conduct business (Abraham & Herman, 1998). Courses in psychology, sociology, and public speaking can prove useful in improving sales techniques (Abraham & Herman, 1998). The use of computers to provide instantaneous information on a wide variety of financial products has greatly improved agents’ and brokers’ efficiency and enabled them to devote more time to clients’ needs (Abraham & Herman, 1998).