With Government-Centric Health Insurance Children Lose

by Mark Cavers The Associated Press reports that some major health insurers, including Florida providers Blue Cross and AETNA, will stop offering certain types of insurance for kids because of regulations passed in the Administrations’ health insurance bill. The decisions stem from insurance companies’ fear “that parents will wait until kids get sick to sign them...

by Mark Cavers

The Associated Press reports that some major health insurers, including Florida providers Blue Cross and AETNA, will stop offering certain types of insurance for kids because of regulations passed in the Administrations’ health insurance bill.

The decisions stem from insurance companies’ fear “that parents will wait until kids get sick to sign them up, saddling the companies with unpredictable costs.”

According to Randy Kammer, Vice President of Blue Cross Blue Shield of Florida, the company believes“the majority of people who would buy this policy were going to use it immediately, probably for high cost claims.”  Krammer points out “Guaranteed issue means you could technically buy it on the way to the hospital.”

This view is not unfounded; one study found that in Massachusetts the number of people purchasing coverage and dropping it within six months increased by 390% between 2006 and 2008.

Read the entire article here.