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OBAMACARE NEGATIVE EFFECTS: 20 States Have Stopped Selling Child-Only Insurance Policies

Posted by FactReal on February 8, 2011

Via The Foundry: [Emphasis added]

20 states no longer have insurance companies offering child-only policies. According to Politico, this is because “many carriers decided to leave the market altogether … rather than take on the burdensome cost of writing policies for potentially pricey medical conditions.”

Obamacare prohibits insurance companies from excluding children with preexisting conditions under any circumstances. This creates the incentive for parents to delay purchasing insurance for their children until they get sick, leaving insurance companies to pick up steep medical costs. Many insurers have thus opted to forgo offering these risky policies rather than face the ruinous effects they could have on their ability to stay in business.

[It] will only become worse once Obamacare eliminates preexisting-condition exclusions under any circumstance for adults as well in 2014. […]

Before Obamacare was signed into law, the only individuals who could face preexisting-condition exclusions when changing plans were those who purchased coverage in the individual market. Yet individual market policies account for less than 10 percent of those covered by private insurance. Under prior law, an enrollee in an employer-sponsored plan could not be denied coverage or charged a higher premium based on health status. An enrollee also could not be subject to a preexisting-condition exclusion as long as he or she had prior coverage for at least a year.

Survey from the U.S. Senate Committee

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