Hi Again

I apologize I took so long to get back. Last couple of weeks were hectic with coursework and submissions.

So I talked to two of my professors and the feedback that I need to talk about one thing at a time. I will try to do that hereon and limit this post about efforts being made by insurance companies to reduce healthcare costs.

I had an opportunity to meet with someone at Optumhealth who told me that Insurance companies these days are getting increasingly conscious of the fact that they are being blamed for rising healthcare costs and declining health quotient in America. Insurance companies are making innovative efforts to get employees and population engaged in healthier lifestyles. For example: Having communication and branding sessions at corporate offices to tell employees about benefits of engaging in healthy efforts or engage with churches to bring awareness of healthier lifestyle amongst Church goers.

Insurance companies are launching new products where the consumer have better control over their policies ( some one can go for a policy with high deductibles and less premiums based upon his/her prime health & less susceptibility to a chronic condition).

Amongst all the products that I know of, I especially like Medical Saving accounts. If the money paid to keep my health insurance policy doubles up as my savings or pension money if I avoid getting myself into a chronic and expensive condition, consumers have better incentive to maintain a healthy lifestyle and go for a regular checkup to prove the pristine health condition.

As I wrote a paper for my healthcare market place class, I came across an article which talked about Bajaj- Allianz launch of Jiyo Fit health Insurance Card. If you maintain a healthy lifestyle ( verified through periodic health checkups at a certified lab), you get points which accumulate towards your savings and reduced premiums in the long run. I think that is cool.

If there's a $500 Macy's gift card on offer at my employer , for losing a few pounds and a shot at publicity via the office newsletter, I might work on weight management more aggressively.

Do we run the risk of adverse selection here? I think so. Someone might avoid going for a dental checkup despite a mild pain in the jaw to keep the savings towards my pension account. I suggest that requirement to submit periodic health report to maintain insurance benefits or health score will work for most people to keep them from making such a selection.

A class discussion talked about health scores - parallel to credit scores. Health insurance companies anyways maintain detailed reports of your health status. How about having a credit score like DnB rating or FICO score which I can look at and understand where my premium would be headed in future. I think that would give me a good incentive to go for periodic health checkups, keep my health GPA high, avoid fries and cheese loaded nachos at Sergeant Preston's and go to gym as often as possible. Extra money for Christmas get- together is tangible return that I would appreciate.

Expert comments, guidance as well as questions are welcome.