Saving You Money For Life

One of the proposed laws now floating around both houses of Congress would allow health insurers to take money that injury victims obtain in personal injury lawsuits in order to cover the health care costs that the insurer paid out as a result of the injury. While most insurance companies reserve this right in their policies, there are lots of states and some federal courts who severely limit this practice.

We needn’t debate the question of what health insurance is for, why we pay those premiums – those of us who can afford them. What is at issue here is the notion of putting an insurance company first in line in a liability action, first in line to recover costs that they are obligated to pay as a result of their line of business – insurance.

Or let’s say, the bill’s sponsors don’t think that debate is necessary. Their claim is that providing insurers access to personal injury awards will lower premium rates and make health coverage more affordable for everyone. Just as managed health care did, I suppose, and as deregulated energy lowered the power bills for all of Enron’s customers.

more after the jump…

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