Health insurers face new challenges in the economic crisis
This week, I had the scare of a lifetime. My mailman dropped off my monthly 401(k) statement.

With the envelope in my trembling hand, what immediately flashed through my mind was not my depleted nest egg. Rather I thought about all the clients I had met in recent weeks to discuss their health insurance plans and, on a more macro level, the shaky state of health care in the United States.

As a health insurance broker licensed in New Jersey, I'm on the front lines of the local health care industry. I am the person who wades through the sea of insurance plans out there, and figures out what plans provide the best value for the individual needs of my clients in the Garden State.

With the plummeting Dow Jones index, all I can think about is how the global economic crisis is affecting my clients, many of whom are small business owners who struggle to provide affordable, quality health insurance to their employees. For these folks, when the economy catches a cold, they catch pneumonia.

Many in this country, including the presidential candidates, are not talking about how health care is affected by the sagging stock market. They are focused on touting their own prepackaged remedies for health care in an economy that has redefined "unpredictable."

As the candidates call for their own version of health care reform, there are some important facts that must be included in the great debate:

The U.S. government is an investor in the stock market, and, as we all know, is spending hundreds of billions of dollars to keep the economy from collapsing. Anticipated federal revenue that the candidates planned to leverage to solve health care issues is no longer available. So, what now?

Health insurance companies are also major investors in the stock market. They use revenue generated from their investments to offset premiums. Just as my 401(k) has taken an incredible hit, I can only wonder how these companies are being affected and what that will mean for my clients when they seek renewals for 2009.

With banks wary to loan money, health insurance companies are ultimately limited in the capital they can borrow to expand programs and services. It is assumed they will pay higher interest rates on the money they do borrow, passing the increased costs to consumers.

Today's credit issues are a major concern of my clients, many of whom rely on small business loans to cover the ebbs and flows of liquid capital. With tighter lending guidelines, my clients have an even more difficult time paying health insurance premiums, and will be forced to put more of the burden on their employees. Thus, in the current economy, my clients are more interested in saving money than looking for expanded health care programs for their employees.

People are looking to tighten their belts wherever possible. Preventative care, such as annual checkups, mammograms and flu shots, are no longer a priority for many. This will ultimately have a drastic effect on the health care industry, as insurers will have to pay for hospital stays and expensive treatments to cure illnesses that could have been easily diagnosed by a family practitioner. This all cycles back into higher insurance premiums for us all.

In this ragged economy, both health insurance brokers and health insurance consumers have new responsibilities.

Brokers must pay even closer attention to the market, and focus intently on finding the absolute best insurance plans for their clients. Brokers must be able to expertly dissect plans and ensure ratepayers find value in all services covered. Now is not the time to spend money for insurance coverage that you don't need.

Brokers must also be constant advocates for their clients, standing up to the insurance companies and demanding reimbursement for all services that are covered under costly plans.

Consumers have a broader role: They must take care of themselves. Individuals must take advantage of preventative health care programs through their insurance carriers, maintain a nutritious diet and exercise a few times a week. If there is a collective effort in America for us all to be healthier, costs to health insurance companies will ultimately decrease.

And, when the stock market ultimately rebounds, we will have a stronger health care system and a healthier America — no matter who is elected president on Nov. 4.

Richard Wheeler President, New Jersey Association of

Health Underwriters

Brielle