It’s common knowledge in the insurance industry that a basic principle of insurance states that prevention or loss control is paramount in Reducing Claims – why shouldn’t this apply to health insurance?
I worked as a commercial insurance agent, Research Manager, Information Technology Manager and Risk Manager. I had knowledge of 22 lines of insurance and preventing a claim or loss was of primary importance to the insurer and insured. Doing so reduced the number of claims and overall claim costs to both. For example, if we wanted to prevent a property claim we would remove items from the building that would be fuel to a fire or install a sprinkler system. If we wanted to reduce the number of back claims in worker’s compensation insurance we would teach employees how to lift with their legs rather than their backs to prevent back injuries.
These types of loss control or prevention methods have been proven, for many decades, to be the most effective means of controlling claims and their related costs. There’s an old insurance adage in this regard, “if you don’t have a claim, you don’t have to pay for it.”