subject: Washington Health Insurance Company Halts Child-Only Policies [print this page] According to Washington state law, health insurers are forbidden from refusing to sell coverage to people on the basis of age. However, several providers are attempting to make an end-run around that legislation.
Regence Blue Cross and Blue Shield is the most well-known of these firms. They are defying the law by continuing to sell individual health insurance to adults, while denying coverage to children under the age of 19.
As is often the case in these issues, healthcare reform plays a significant role. In late September, the federal government imposed a ban on refusing to provide coverage to children with pre-existing health conditions. A similar ban on discriminating against adults based on health status will be phased in by 2014. Insurers have grudgingly accepted the latter, because it is partnered with an individual mandate, which will bring them enough new customers to help cover the cost of more expensive patients.
On the one hand, the lifting of the limitation against selling affordable health insurance to children is far more popular with the general public. Minor children are virtually never at fault for their health status, unlike adults that may be blamed for contributing to their condition(s). In that respect, it should not be a moral hazard. However, some believe that parents will purposely delay purchasing coverage for their children until they have already developed a serious health condition.
Why would parents buy a child-only policy? Especially for those families struggling economically, it may be necessary to sacrifice themselves for the sake of their kids' health. If they can only afford one premium, it will be their child's. Therefore, it is doubtful that such families will put their child's health at risk by leaving them uninsured until the last possible second.
In the case of Regence, their lucrative adult business is suffering due to their decision to suspend children's health insurance sales. As a result of their violation, the state's insurance commissioner has ordered them to cease and desist selling all policies.
For their part, Regence's president claims that the suspension of sales was necessary to protect their other customers from rising premiums.
Washington Health Insurance Company Halts Child-Only Policies
By: Yamileth Medina
welcome to Insurances.net (https://www.insurances.net)
