Major health insurers in California to resume offering individual policies for children

[RamboLiberal]

Source: LA Times

California's largest health insurers, fearing they'll lose new customers in the state's lucrative individual insurance market, have canceled controversial decisions last fall to stop selling policies for children.

The insurance companies abruptly halted the sale of individual policies for kids in September rather than comply with provisions of the nation's new healthcare law that required them to accept all youngsters under age 19 regardless of their medical conditions.

Insurers said at the time that the healthcare overhaul could saddle them with huge and unexpected costs, particularly if competitors exited the market. Their decisions prompted criticism from health activists and the Obama administration, who accused them of abandoning children and families.

But a new California law forced the insurers to change course. It would prohibit those who abandon child-only coverage from selling new policies in the broader individual insurance market for five years — slicing into profits in a state filled with throngs of potential customers.


Read more: http://www.latimes.com/news/local/la-fi-child-insurance-20101223,0,7056080.story

[Skink]

1. I thought kids were covered regardless?

[BenzoDia]

2. These insurers dropped their "children only" policies, so the kids would have to join family plans.

[Yo_Mama]

3. It's the Roll

Insurance operates like loan portfolios.

People with bad health (or bad financial health) never leave. People with good health do. Thus a healthy insurance base and a healthy loan portfolio depend on being able to sign up new customers.

The premiums will rise, though.

[BenzoDia]

4. Actually, part of the health care law will help protect against unfair premium hikes.

http://www.whitehouse.gov/blog/2010/12/21/white-house-white-board-health-reform-rate-review

First, the Affordable Care Act gives states $250 million to enhance their rate review procedures so they can better protect consumers and stop unreasonable premium hikes from taking effect. 46 states and the District of Columbia have already received a share of these resources and they’re using the new funds to make more information about premiums available to the public and get the authority they need to oversee the insurance marketplace and protect consumers.

Second, the Affordable Care Act brings new transparency to the health insurance market by requiring insurance companies to publicly justify any unreasonable premium increases. Under the new rules, if an insurance company proposes to raise rates by 10% or more, they must publicly disclose on their own, as well as HHS’ website the justification for the increase. The appropriate state insurance commissioner or, if a State does not have an effective rate review process, HHS, will then review the insurance company’s justification to determine whether or not the increase is justified. In some states like, Washington and Maine, all new insurance premium rates, regardless of whether they are below 10% need to be approved by the state insurance commissioner’s office ahead of time, and will continue to be reviewed moving forward.

edit:
This is just the beginning. There's a lot more changes coming. Check out this link for a general overview:
http://www.healthcare.gov/law/timeline/index.html