Some major health insurance companies will no longer issue certain types of policies for children, an unintended consequence of President Barack Obama’s health care overhaul law, state officials said Friday.
What do they mean by “certain types of policies?”
The major types of coverage for children — employer plans and government programs — are not be affected by the disruption. But a subset of policies — those that cover children as individuals — may run into problems. Even so, insurers are not canceling children’s coverage already issued, but refusing to write new policies.
Why would they do such a thing?
Starting later this year, the health care overhaul law requires insurers to accept children regardless of medical problems — a major early benefit of the complex legislation. Insurers are worried that parents will wait until kids get sick to sign them up, saddling the companies with unpredictable costs. [emphasis mine]
Who could have anticipated that?.~ Why wouldn’t parents pay for insurance when they don’t need it rather than waiting until they do? It’s only money.~
Blue Cross and Blue Shield of Florida issues about 9,000 to 10,000 new policies a year that only cover children. Vice president Randy Kammer said the company’s experts calculated that guaranteeing coverage for children could raise premiums for other individual policy holders by as much as 20 percent.
“We believe that the majority of people who would buy this policy were going to use it immediately, probably for high cost claims,” said Kammer. “Guaranteed issue means you could technically buy it on the way to the hospital.”
This “guaranteed coverage” that was in the “reform” bill is just ripe for abuse, and the insurers know it. One of the first things I said when this idiocy was passed was that if I were in the health insurance business I would be getting out of the health insurance business as fast as possible. I’ll be surprised if there are more than a couple of private health insurance companies left in five years, and I wouldn’t be surprised if there were none at all.
Which may have been the point of the bill in the first place.