Posted on 09/21/2010 3:27:24 PM PDT by tobyhill
A move by insurance companies to stop selling child-only policies is drawing criticism ahead of Thursday, when the federal health overhaul will require insurers to cover sick children.
Aetna Inc., Cigna Corp., WellPoint Inc., Humana Inc. and UnitedHealth Group Inc.'s Golden Rule subsidiary say they will no longer sell new child-only policies. The new law requires them to accept applications from sick children on insurance policies that they sell, but doesn't require them to sell a policy individually to children in the first place. Insurers said children with pre-existing conditions will be able to apply for coverage on their parents' plans.
"The new federal rules required guaranteed-issue coverage for individuals under 19 without regard to affordability," said Matt Wiggin, an Aetna spokesman. "So folks seeking coverage would be those who need immediate services for high-cost conditions."
Mr. Wiggin says the insurer made the decision to protect its existing child-only policyholders from increasing premiums. Aetna has only discontinued the sale of new policies, he said.
Golden Rule also recently discontinued the sale of policies to children individually. "Given current health-insurance market dynamics and regulations, it is necessary to require a parent to be on a policy in the same manner as is required on an employer group plan," said Ellen Laden, a spokeswoman. "We continue to believe that regulations can be structured that will enable child-only plans to be offered and we are working toward that goal."
(Excerpt) Read more at online.wsj.com ...
Nothing unexpected...
The dems goal is complete government control of all businesses. They’re doing it a little at a time. Give them a chance and they will realize the communists dream of all the means of production in the hands of the governement.
I was certain that once this health care plan was voted on they would start building beautiful modern conveyor belts with comfortable chairs to whisk the sick to doctors' offices and hospitals in relative comfort and ease.
LLS
Right concept, wrong destination.
The conveyor belts are being built, but they don't go to the hospitals.
They go to the cemeteries.
The thing is the real losers at the end of the day will be us.
I still wonder what the real impact would be to these companies if they covered these cases.
Now that's what I call, "Cutting out the middleman."
I wonder if the dems really believe they can command the economy and have it turn out well. I’ve been assuming they’re doing all this on purpose, but maybe they’re really simply clueless.
>>The dems goal is complete government control of all businesses.<<
Yep. A little bit is called “regulation”. But it crossed the line into fascism before Obama was elected. It is quickly reaching a state that would make Mussolini proud.
That’s a good question, although “impact to those companies” implies that the companies are something other than a conduit of costs to their customers. A large customer base of generally healthy insureds can absorb a few “loss leaders,” as it were, but not an unlimited amount.
but yes, they're some evil idiots.
Once again free market principles defeat government regulation. What the result is sucks, but it is what it is. When more regulation is enacted, the market will adjust again. I have full faith that FMP will always find a way(Unless of course the federal gov’t takes over everything)
This is what happens when people with actual business experience are forced to follow the demands of academics who have never managed a lemonade stand.
When Reality meets Theory; reality ain’t simplistic like the theory.
Well, that was why they had to have the universal mandate. With it, you can provide coverage for pre-existing conditions: you just jack up rates on the captive audience.
Without it, well, you have to confront the fact that “insurance” for pre-existing conditions is a logical impossibility. You cannot insure against something that has already occurred. It’s like trying to buy a ticket after the horses have finished the race.
ah yes ........Incrementalism
I am sure a deal can be made if the Gov tells them: We want to buy insurance for x million children that can’t get health insurance through their parents. Many states do it, they issue insurance to everyone, and rates are much cheaper than buying it individually.
Imagine having a sick child with no insurance?
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