Health insurance has become a hot-button issue over the past year, with the controversial passage of a health-care reform law earlier this year in Congress. It seems like everyone has a strong opinion on the insurance industry, premiums, coverage, reform, and the government’s role in regulating the healthcare industry. One of the main points of contention has been whether or not health insurance premiums should be controlled.

There are many arguments for and against controlling insurance premiums for health coverage. Here are three main reasons why premiums for health care should be controlled.

Controlled Premiums Prevent Collusion

In a capitalist economy, the free market reigns supreme. However, one real danger to the American consumer is the idea of health care companies banding together to raise premiums on Americans across the board. This is called collusion, and while there are laws on the books against certain practices, it is not illegal for individual companies to raise premiums based off of economic arguments.

If companies are free to raise rates, then virtually anyone who has private insurance will have to pay more per month for the same amount of care. In today’s weakened economy, the only thing that can help in the long run is if the average consumer becomes financially active – and it is difficult to do that when the average person has to pay more out-of-pocket expenses for basic necessities like health care.

Controlled Premiums Make Care More Affordable

As it stands now, health insurance premiums are already too expensive for a good percentage of Americans, who cannot afford private insurance and who may not be completely covered by Medicare or Medicaid. If premiums are allowed to be uncontrolled, these individuals and their families – a significant segment of the population – may not be able to afford rising premiums. As a result, they will go uninsured.

Controlling premiums allows for more American families to purchase health coverage, ensuring that they will be able to afford the crucial services that often are taken for granted.

Controlled Premiums Make Economic Sense

As mentioned above, premiums that are allowed to get too high can cause millions to go without insurance. Without adequate health coverage, uninsured Americans not only suffer, but also unwillingly become a burden on the American taxpayer, who ultimately will foot a higher bill due to emergency room usage and other factors. The United States already spends more on health care per person than just about every other country in the world.

Insurance premiums that are not suitably controlled will just contribute to government spending and place a strain on an already-weakened economy. The three reasons above, therefore, are why premiums for health insurance should be controlled.