A Peek at How Your Insurance Dollars are Being Invested

http://ir.assurant.com/pressroom/releasedetail.cfm?ReleaseID=127821

The link above leads to an article about one health insurance company's role within its larger "umbrella" company.

I began researching the financial background of my insurance company after my health insurance premiums were raised 21% ($840) per year. My insurance company, which began as a health insurance provider for small business, merged with a larger multi-national in 2004, and operating under its umbrella.

Strangely enough, when the national and international financial markets began to falter, my rates began to rise. This is not a lone incident. Other health insurance companies operate in a similar manner. I hope this article may help expand the discussion on the merits of privately managed health care beyond talking points, and fist waving. I cannot fathom why the public would support the practice of having their money used for risky business ventures.

This quote, taken from the article I have posted a link to above says volumes about how our health insurance premiums are being used to prop up other investments in the financial market.

"The company [Fortis] said this transaction [The merger with Assurant] is consistent with Fortis' strategy in the United States to build and manage a select portfolio of specialty insurance businesses that are leaders in their respective markets. FFG will now be able to realize its full potential with Hartford Life, whose leading position in the U.S. variable annuities market and rising profile in the mutual fund business offer it a unique platform for future growth. This transaction will also enable Fortis, Inc. to focus more closely on new opportunities for its niche businesses - Assurant Group, Fortis Benefits, Fortis Family and Fortis Health - and in other high-potential specialty markets."

I am not opposed to growth; and, as I mentioned in my previous post, do not mind my money being invested wisely in slow growth, low risk markets if such an investment benefits holders of the policy.

Perhaps some useful questions to ask our representatives in state and national Congress might be:

1. What laws govern/regulate the use of our health insurance premiums? Those premiums are supposedly maintained in a pool of funds from which our bills get paid in the event we make a health insurance claim.

2. How is that pool protected? The FDIC protects our savings, and now potentially other retirement investments.

Can our health insurance investments be protected? Could those funds at least be better regulated?

Certain groups want Americans to focus solely on the private sector solution to health costs, but they seem reluctant to discuss details. Perhaps there can be a private sector solution, but not unless we expose the flaws and outright mismanagement that has all but bogged down private health insurance.

My final observation: Why do we call it Health Care Reform when what we are actually discussing is the method of payment? Where are the doctors, the nurses, the hospitals, the biotechnology reps and so forth? All we seem to hear about or from are the insurance companies, and they don't have any answers only higher premiums and deductible