You know those mandates that force insurance companies to cover children of adults until they are 26 years old? And the ones that forbid rejecting children who have pre-existing conditions? Yeah that costs insurance companies money. Can you believe that? Health care costs money! It costs more money to cover people for mandated coverages! Who could have foreseen that? Not Obama and his merry band of tenured Ivy League hermits, who have never held private sector jobs in their entire lives.
Story from The Hill. (H/T Health Care BS via ECM)
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.
[…]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.
[…]…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.
Yeah, insurance companies don’t like being forced to add coverages, (= risk of having to pay claims), while keeping premiums the same. It increases their losses. And if they can’t raise premiums to cover the increased exposure to claims on these additional coverages, then they go out of business. And then you get to pay for your own health care costs out-of-pocket.
The only person who did not see this coming is Barack Obama. He understands less about economics than my keyboard.
Here is my previous post about Connecticut raising their health premiums 20% or more to respond to Obamacare.