Dropping Out
How are health insurance companies responding to the requirement “that they must write policies for children under 19, including those with pre-existing conditions, no matter when their parents apply?” They are leaving the market:
One of the largest insurance markets in the country, Texas, has seen all of its carriers drop child-only health insurance, as have other large states including Florida and Illinois.
Of the 48 states that responded to the HELP Committee survey, 20 said there are no carriers currently selling child-only plans to new enrollees.
Why am I not surprised? Congress can pass all the laws it wants, but it will never be able to suspend the basic laws of economics.
I do not believe the Administration really understands this phenomenon. They assumed health insurers were making out like bandits and would begrudgingly accept money-losing customers. However, the prospect of a deteriorating market combined with uncertainty about the future is enough to make some insurers abandon whole markets.
Before it’s over all you are going to see is Blue Cross and United Health.
Larry, you’re wrong. When it’s all over there will be only government insurance, administered by Blue Cross and United Health.
I think this is very worrisome. We’re headed toward national health insurance.
The consolidation in the industry reflects the fact that Obama Care is not really about encouraging competition. It’s about consolidating power over the supply side of the market.