Some major health insurance companies have stopped issuing certain types of policies for children, an unintended consequence of President Barack Obama’s health care overhaul law, state officials said Friday. Florida Insurance Commissioner Kevin McCarty said in his state UnitedHealthcare and Blue Cross Blue Shield have stopped issuing new policies that cover children individually. Oklahoma Insurance Commissioner Kim Holland said a couple of local insurers in her state have done likewise.
Starting later this year, the health care overhaul law requires insurers to accept children regardless of medical problems. Insurers are worried that parents will wait until kids get sick to sign them up, saddling the companies with unpredictable costs.
No one should be surprised by any of this. Of course insurers are going to stop writing policies for children! The new rules make them unprofitable. Family plans will survive (for now), because even those abusing the system will have to pay for the whole family, and probably the whole family isn’t sick. Existing policies will survive as well; those people aren’t abusing the system.
An unintended consequence? Perhaps. A predictable consequence? Definitely.
(Via Hot Air.)