Health insurers drop coverage for children ahead of new rules
By Julian Pecquet - 09/20/10 05:00 PM ET
Health plans in at least four states have announced they're dropping children's coverage just days ahead of new rules created by the healthcare reform law, according to the liberal grassroots group Health Care for America Now (HCAN).
The new healthcare law forbids insurers from turning down children with pre-existing conditions starting Thursday, one of several reforms Democrats are eager to highlight this week as they try to build support for the law ahead of the mid-term elections. But news of insurers dropping their plans as a result of the new law has thrown a damper on that strategy and prompted fierce push-back from the administration's allies at HCAN.
The announcement could lead to higher costs for some parents who are buying separate coverage for themselves and their children at lower cost than the family coverage that's available to them.
"We’re just days away from a new era when insurance companies must stop denying coverage to kids just because they are sick, and now some of the biggest changed their minds and decided to refuse to sell child-only coverage," HCAN Executive Director Ethan Rome said in a statement. "The latest announcement by the insurance companies that they won't cover kids is immoral, and to blame their appalling behavior on the new law is patently dishonest.
"Instead, they should reverse their actions immediately and simply follow the law. If the insurance companies can casually turn their backs on sick children now, who will they abandon next? This offensive behavior by the insurance companies is yet another reminder of why the new law is so important and why the Republicans’ call for repeal is so misguided."
Health plans and state insurance commissioners in July raised concerns that the new rules could lead some insurers to stop children-only coverage because families could wait until their children get sick to buy coverage.
Days later, the Obama administration issued regulations clarifying that insurers would still be able to establish enrollment periods in accordance with state law.
"To address concerns over adverse selection, issuers in the individual market may restrict enrollment of children under 19, whether in family or individual coverage, to specific open enrollment periods if allowed under state law," the Department of Health and Human Services clarified.
The issue had largely dropped out of sight since then, but insurers including WellPoint and CoventryOne have announced in recent days that they're dropping children's coverage in California, Colorado, Ohio and Missouri, according to HCAN.
http://thehill.com/blogs/healthwatch/health-reform-implementation/119823-insurers-drop-childrens-insurance-plans-ahead-of-new-rules
Showing posts with label health insurers. Show all posts
Showing posts with label health insurers. Show all posts
Tuesday, September 21, 2010
Tuesday, September 14, 2010
Monday, September 13, 2010
Townhall: Michael Barone
Gangster Government Stifles Criticism of Obamacare
"There will be zero tolerance for this type of misinformation and unjustified rate increases."
That sounds like a stern headmistress dressing down some sophomores who have been misbehaving. But it's actually from a letter sent Thursday from Health and Human Services Secretary Kathleen Sebelius to Karen Ignagni, president of America's Health Insurance Plans -- the chief lobbyist for private health insurance companies.
Sebelius objects to claims by health insurers that they are raising premiums because of increased costs imposed by the Obamacare law passed by Congress last March.
She acknowledges that many of the law's "key protections" take effect later this month and does not deny that these impose additional costs on insurers. But she says that "according to our analysis and those of some industry and academic experts, any potential premium impact ... will be minimal."
Well, that's reassuring. Er, except that if that's the conclusion of "some" industry and academic experts, it's presumably not the conclusion of all industry and academic experts, or the secretary would have said so.
Sebelius also argues that "any premium increases will be moderated by out-of-pocket savings resulting from the law." But she's pretty vague about the numbers -- "up to $1 billion in 2013." Anyone who watches TV ads knows that "up to" can mean zero.
As Time magazine's Karen Pickert points out, Sebelius ignores the fact that individual insurance plans cover different types of populations. So that government and "some" industry and academic experts think the new law will justify increases averaging 1 percent or 2 percent, they could justify much larger increases for certain plans.
Or as Ignagni, the recipient of the letter, says, "It's a basic law of economics that additional benefits incur additional costs."
But Sebelius has "zero tolerance" for that kind of thing. She promises to issue regulations to require "state or federal review of all potentially unreasonable rate increases" (which would presumably mean all rate increases).
And there's a threat. "We will also keep track of insurers with a record of unjustified rate increases: those plans may be excluded from health insurance Exchanges in 2014."
That's a significant date, the first year in which state insurance exchanges are slated to get a monopoly on the issuance of individual health insurance policies. Sebelius is threatening to put health insurers out of business in a substantial portion of the market if they state that Obamacare is boosting their costs.
"Congress shall make no law," reads the First Amendment, "abridging the freedom of speech, or of the press."
Sebelius' approach is different: "zero tolerance" for dissent.
The threat to use government regulation to destroy or harm someone's business because they disagree with government officials is thuggery. Like the Obama administration's transfer of money from Chrysler bondholders to its political allies in the United Auto Workers, it is a form of gangster government.
"The rule of law, or the rule of men (women)?" economist Tyler Cowen asks on his marginalrevolution.com blog. As he notes, "Nowhere is it stated that these rate hikes are against the law (even if you think they should be), nor can this 'misinformation' be against the law."
According to Politico, not a single Democratic candidate for Congress has run an ad since last April that makes any positive reference to Obamacare. The First Amendment gives candidates the right to talk -- or not talk -- about any issue they want.
But that is not enough for Sebelius and the Obama administration. They want to stamp out negative speech about Obamacare. "Zero tolerance" means they are ready to use the powers of government to threaten economic harm on those who dissent.
The closing paragraph of Sebelius's letter to AHIP's Karen Ignagni gives the game away. "We worked hard to change the system to help consumers." This is a reminder that the administration alternatively collaborated with and criticized Ignagni's organization. We roughed you up a little, but we eventually made a deal.
The secretary goes on: "It is my hope we can work together to stop misinformation and misleading marketing from the start." In other words, shut your members up and play team ball -- or my guys with the baseball bats and Tommy guns are going to get busy. As Cowen puts it, "worse than I had been expecting."
Michael Barone is a Fox News Channel contributor and co-author of The Almanac of American Politics. He is Senior Political Analyst for the Washington Examiner and a Resident Fellow at the American Enterprise Institute, a Fox News Channel contributor and co-author of The Almanac of American Politics.
TOWNHALL DAILY: Be the first to receive Michael Barone's column. Sign up today and receive Townhall.com daily lineup delivered each morning to your inbox.
©Creators Syndicate
http://townhall.com/columnists/MichaelBarone/2010/09/13/gangster_government_stifles_criticism_of_obamacare
"There will be zero tolerance for this type of misinformation and unjustified rate increases."
That sounds like a stern headmistress dressing down some sophomores who have been misbehaving. But it's actually from a letter sent Thursday from Health and Human Services Secretary Kathleen Sebelius to Karen Ignagni, president of America's Health Insurance Plans -- the chief lobbyist for private health insurance companies.
Sebelius objects to claims by health insurers that they are raising premiums because of increased costs imposed by the Obamacare law passed by Congress last March.
She acknowledges that many of the law's "key protections" take effect later this month and does not deny that these impose additional costs on insurers. But she says that "according to our analysis and those of some industry and academic experts, any potential premium impact ... will be minimal."
Well, that's reassuring. Er, except that if that's the conclusion of "some" industry and academic experts, it's presumably not the conclusion of all industry and academic experts, or the secretary would have said so.
Sebelius also argues that "any premium increases will be moderated by out-of-pocket savings resulting from the law." But she's pretty vague about the numbers -- "up to $1 billion in 2013." Anyone who watches TV ads knows that "up to" can mean zero.
As Time magazine's Karen Pickert points out, Sebelius ignores the fact that individual insurance plans cover different types of populations. So that government and "some" industry and academic experts think the new law will justify increases averaging 1 percent or 2 percent, they could justify much larger increases for certain plans.
Or as Ignagni, the recipient of the letter, says, "It's a basic law of economics that additional benefits incur additional costs."
But Sebelius has "zero tolerance" for that kind of thing. She promises to issue regulations to require "state or federal review of all potentially unreasonable rate increases" (which would presumably mean all rate increases).
And there's a threat. "We will also keep track of insurers with a record of unjustified rate increases: those plans may be excluded from health insurance Exchanges in 2014."
That's a significant date, the first year in which state insurance exchanges are slated to get a monopoly on the issuance of individual health insurance policies. Sebelius is threatening to put health insurers out of business in a substantial portion of the market if they state that Obamacare is boosting their costs.
"Congress shall make no law," reads the First Amendment, "abridging the freedom of speech, or of the press."
Sebelius' approach is different: "zero tolerance" for dissent.
The threat to use government regulation to destroy or harm someone's business because they disagree with government officials is thuggery. Like the Obama administration's transfer of money from Chrysler bondholders to its political allies in the United Auto Workers, it is a form of gangster government.
"The rule of law, or the rule of men (women)?" economist Tyler Cowen asks on his marginalrevolution.com blog. As he notes, "Nowhere is it stated that these rate hikes are against the law (even if you think they should be), nor can this 'misinformation' be against the law."
According to Politico, not a single Democratic candidate for Congress has run an ad since last April that makes any positive reference to Obamacare. The First Amendment gives candidates the right to talk -- or not talk -- about any issue they want.
But that is not enough for Sebelius and the Obama administration. They want to stamp out negative speech about Obamacare. "Zero tolerance" means they are ready to use the powers of government to threaten economic harm on those who dissent.
The closing paragraph of Sebelius's letter to AHIP's Karen Ignagni gives the game away. "We worked hard to change the system to help consumers." This is a reminder that the administration alternatively collaborated with and criticized Ignagni's organization. We roughed you up a little, but we eventually made a deal.
The secretary goes on: "It is my hope we can work together to stop misinformation and misleading marketing from the start." In other words, shut your members up and play team ball -- or my guys with the baseball bats and Tommy guns are going to get busy. As Cowen puts it, "worse than I had been expecting."
Michael Barone is a Fox News Channel contributor and co-author of The Almanac of American Politics. He is Senior Political Analyst for the Washington Examiner and a Resident Fellow at the American Enterprise Institute, a Fox News Channel contributor and co-author of The Almanac of American Politics.
TOWNHALL DAILY: Be the first to receive Michael Barone's column. Sign up today and receive Townhall.com daily lineup delivered each morning to your inbox.
©Creators Syndicate
http://townhall.com/columnists/MichaelBarone/2010/09/13/gangster_government_stifles_criticism_of_obamacare
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