Here’s another example of how our President does not understand the capitalist system. Starting in this year, Obamacare requires insurers to accept children regardless of pre-existing conditions. The problem is insurers are worried that parents will wait until kids get sick to sign them up, causing insurers to pay out without ever getting revenue from paid in. To fight this, in an “unintended,” but absolutely predictable consequence of Obama’s health care program, some insurers have stopped writing certain individual policies covering children (as opposed to family plans).
Florida Insurance Commissioner Kevin McCarty said in his state UnitedHealthcare and Blue Cross Blue Shield have stopped issuing new policies that cover children individually. Oklahoma Insurance Commissioner Kim Holland said a couple of local insurers in her state have done likewise.
The administration reacted sharply to the insurance pullback. “We’re disappointed that a small number of insurance companies are taking this unwarranted and unnecessary step,” said Jessica Santillo, a spokeswoman for the Health and Human Services department.
This won’t affect government or employer plans, just plans that cover kids as individuals,
Even so, insurers are not canceling children’s coverage already issued, but refusing to write new policies. Industry officials estimate that children’s policies account for 8 percent of single coverage plans sold directly to consumers.
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“Our plans are very concerned about this,” said Alissa Fox, a top Washington lobbyist for the Blue Cross Blue Shield Association. “If the law says that insurers have to take you any time, any place, some people will see that as an opportunity to wait until their children get sick to buy coverage.”
Insurers believe they have a solution, but who knows if the anti-business Obama administration will go for it:
To get around the problem, insurance companies and state insurance commissioners are pressing the federal government to require an open enrollment period for the guaranteed children’s coverage.
Parents could only get the guaranteed coverage during a designated month each year, or if the family went through a major change, such as a divorce or a parent losing their job. Open enrollment periods are standard for most employer health plans, and some government programs.
“That seems to be a fairly reasonable approach,” said Holland, the Oklahoma commissioner, a Democrat. “It would create a mechanism to get children into coverage but limit the ability to misuse the system.”
State insurance commissioners have brought the problem to the attention of the Obama administration. “We are attempting to convince (federal officials) that this is a serious enough concern to work with (insurers) to give them some relief,” Holland said.
This is what happens when people who don’t know what they are doing, rush through an over-reaching 2,700 page bill…unintended consequences, unfortunately it is the public who suffers.