The Squeeze Begins

by Heather Wilhelm The great national health-care squeeze, as today’s Washington Post reports, has begun–and Americans can thank the new health care law: Some of the country’s most prominent health insurance companies have decided to stop offering new child-only plans, rather than comply with rules in the new health-care law that will require such plans to start...

by Heather Wilhelm

The great national health-care squeeze, as today’s Washington Post reports, has begun–and Americans can thank the new health care law:

Some of the country’s most prominent health insurance companies have decided to stop offering new child-only plans, rather than comply with rules in the new health-care law that will require such plans to start accepting children with preexisting medical conditions after Sept. 23.

The companies will continue to cover children who already have child-only policies. They will also accept children with preexisting conditions in new family policies.

Nonetheless, supporters of the new health-care law complain that the change amounts to an end run around one of the most prized consumer protections.

Ed Morrissey at HotAir points out, however, that this was only a matter of time:

Critics blast the insurers for their “immoral” decision, but they had little choice.  The federal government mandate requires them to accept any child at any time, regardless of any pre-existing condition, but doesn’t yet require parents of healthy children to buy policies for them.  It sets up an incentive system where this scenario will unfold repeatedly…

In other words, the government’s pre-existing conditions mandate is a double-edged sword, encouraging parents to wait until their child gets very sick before purchasing a plan–and, in effect, leaving insurance companies in the lurch.   Morrissey continues:

No one should be shocked at this decision.  When governme