"Canceled policies could be a plus for new markets"

[applegrove]

Canceled policies could be a plus for new markets

RICARDO ALONSO-ZALDIVAR at AP

http://m.apnews.com/ap/db_289563/contentdetail.htm?contentguid=FivVcjbG

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Millions of people who currently buy their own health insurance coverage are losing it next year because their plans don't meet requirements of the health care law. But experts say the resulting shift of those people into the new health insurance markets under Obama's law would bring in customers already known to insurers, reducing the overall financial risks for each state's insurance pool.

That's painful for those who end up paying higher premiums for upgraded policies. But it could save money for the taxpayers who are subsidizing the new coverage.

"Already-insured people who do roll over will improve the risk pool, not hurt it," said David Axene, a California-based actuarial consultant for health plans, hospitals, government programs and employers.

Compared to the uninsured, people with coverage are less likely to have a pent-up need for medical services, he explained. They may have already had that knee replacement instead of hobbling around on a cane. They're also more likely to have seen a doctor regularly.



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