In the next year, the new health care bill enacted by the U.S. Congress will become partially operational and will begin to have an impact on the way Americans deal with their private insurance companies. The new bill will begin by creating what are known as "high risk pools" in states that do not already have them, and these pools are intended to cover Americans that are not able to afford reasonable coverage. Eventually, the bill will extend to become a functional alternative form of health insurance that will have a significant impact on the way that private insurance companies do business in the United States.

There are a number of reasons that the new health care bill will impact how private insurance companies do business. The first is that it will create a publically-regulated health care option that will operate the same way that private insurance does. This option will be available to Americans that cannot afford "typical" private insurance and will cover the basic functions of a health care plan. As the government will be making it unlawful for any American to go without health care coverage, this federal plan is aimed at covering the largest number of people for the lowest possible price. This will affect private insurance companies by representing a form of competition. However, while the plan will carry some of the same functionality of private health care insurance, those who need and can afford specialized services will likely still use private providers.

In addition, the new health care bill will also create a government agency that will oversee the way that private insurance companies manage their care. This oversight committee will be responsible for ensuring that private companies are adhering to basic standards of care as set out by the government. These standards are not intended to be onerous, but instead, represent a basic level of operation that will ensure patient safety and effective administration of services. A common fear in the private insurance industry is that this oversight program will become bogged down in red tape and limit the ability of private companies to administer care and run their business profitably. While the government has assured private companies that this will not be the case, only time and the actual implementation of the new bill will tell.

Private health insurers rightfully have a number of concerns about the new health care bill, and the American public is worried about how this new legislation will affect the function and effectiveness of the care that they receive. The hope is that the new bill will assist in getting more Americans better care, but private insurance will be faced with some need to change.