Health insurance companies are often lauded and hated by many American families. On one hand, families need the health insurance coverage they provide, and a great provider can make having a policy and processing claims simple and straightforward. On the other, a bad provider can make it difficult for an individual or family to get the coverage they need, and make mean that they pay more than they should for their health insurance. While standard healthcare plans are often comprised of similar coverage, even across companies, the amount that is charged for such coverage can vary wildly, and many companies have been accused of overcharging for their services.

One of the key mandates for any insurance company is to make a reasonable profit - in the same way that any other business operates. The nature of the insurance market, however, is such that it is easy to overcharge for services rendered, or charge too much on a monthly basis. Because each family and plan is unique, however, it can be difficult to calculate if the amount charged is unfair, or simply a reflection of greater services being offered. Many companies have been accused of overcharging, which is one reason that the current federal government is seeking health care reform that will see stricter laws in place to regulate both services and the amount they cost.

There are a number of reasons that standard healthcare companies have been accused of overcharging their customers, starting with the use of services in recent years. Before the recent economic crisis, the use of health services was on the rise, and rates were increasing to reflect that fact. As Americans lost their jobs and were forced to scale back their insurance use, the number of services being used dropped off, but the rates for these services did not follow suit. As a result, insurance companies have been accused of charging too much. In addition, a number of companies have been criticized for charging members who develop illnesses or serious health problems increased amounts for their insurance, and either reducing or cancelling that insurance outright when they learn of an issue. This has led to a climate where consumers are hyper-aware of the amount they pay each month, and are in many cases conditioned to distrust their insurance company before they even make a purchase.

Health insurance companies have their work cut out for them in order to both clean their reputation and earn consumer trust. Hopefully, new legislation will help with this effort, as will a new generation of health companies that are more patient focused and flexible than their older counterparts, giving clients a wider variety of options for their care.