The health care industry is facing significant challenges as the reform in progress by President Obama and the current administration comes closer to being law. Although the legislation has faced a number of challenges in the years since it was first brought to congress, it is slowly closing in on completion. This health care reform is some of the most significant health legislation that the United States has ever seen, and the health care industry must be prepared for this reform, as it will affect them in a number of significant ways.

Currently, the American health care industry operates under an almost entirely private framework. Programs like Medicare and Medicaid do exist for seniors and those in need, and several states do have legislation which mandates that children under a certain age be given coverage through state-run programs, but for most Americans, finding a private healthcare provider is their only choice. This leads to decisions about HMOs, PPOs or self-directed plans, and agonizing over what will provide the best coverage. While the health care reform currently being discussed doesn't change the fundamental way in which companies will deliver their services, it does add a government-run layer of insurance for those that cannot afford private health care, an option that any American can take advantage of should they need it. This insurance will provide only basic coverage, and is intended to be a best fit for those new to the country or who have fallen on hard times.

In addition, the health care industry will also have to prepare for greater scrutiny from the federal government as all insurance companies and their facilities will be held to a country-wide standard that all government-run facilities must also meet. If a company is found to be non-compliant or if their services do not meet the expectations put forth in the legislation, it may result in a suspension of services or the revocation of the company's ability to sell insurance in the country. Health care reform means that the government will have a greater ability to mandate how care is given and what standards insurance companies must meet in order to provide their services. For companies that are slow to comply or choose not to meet the standards, there is the possibility that a great deal of red tape could be the result.

While the government health care reform bill is still under review, there is no question that any implementation of will result in a number of direct effects to the way health insurance companies do business, and as a result these businesses must be ready for the challenges that lie ahead.