You can pretty much figure out AHIP’s game here. With no restrictions on cost until 2014, the industry can raise their premium prices almost at will. Even the bad publicity suffered from that 39% rate hike of Anthem Blue Cross plan has not stopped that scheduled increase from taking effect in May. And when outrage is expressed by families facing double-digit rate hikes, AHIP will clear their throats and blame the pre-existing condition exclusion for children, forcing the poor insurance companies to take on a sicker risk pool and raise prices to survive.
|By: David Dayen Tuesday March 30, 2010 7:50 am|
|By: David Dayen Monday March 29, 2010 7:14 am|
Guaranteed issue doesn’t mean a whole lot on its own without accompaniment with some form of community rating. Otherwise, the insurer can increase premiums to such a degree for the particular family that they wouldn’t be able to afford insurance without keeping the child off the policy.
|By: David Dayen Thursday March 25, 2010 6:45 pm|
What’s going on here is that some insurance company – or the trade group, AHIP – read the language in the bill and interpreted it favorably to their industry. They’re trying to wiggle off the hook of offering coverage for children with pre-existing conditions TWO DAYS after signage of the law.