One more piece of Obamacare that is scheduled to take effect on Thursday, has encountered a problem…major insurance companies will not provide the insurance.
Aetna, Cigna, Wellpoint, Humana, United Health Group, and, at least in Florida, Blue Cross Blue Shield have stopped writing new children only insurance policies. Why, you ask? Well, beginning Thursday any “child” applying for insurance must be accepted regardless of their health condition. The insurance companies were understandably concerned that parents would wait until their child needed expensive medical care before applying for coverage. And, why wouldn’t they? Why pay for health insurance until you need health care? And why continue to pay for health insurance when you don’t need health care.
Here is what Aetna spokesman, Matt Wiggin said concerning Aetna’s decision:
Folks seeking coverage would be those who need immediate services for high-cost conditions…[Aetna] made the decision to protect its existing child-only policyholders from rising premiums…
Because, that is exactly what would happen. The folks in need of expensive care would apply for and receive insurance, remain insured until they were cured, and then drop coverage, leaving the rest of the policy holders to pay for that expensive care in the form of ever increasing premiums. See: Maine or Massachusetts.
Of course, children can still be covered by their parents’ policy, but, parents can’t wait until their child becomes sick to apply.
The ironic thing, however is that these child only policies were extremely popular.
Child-only policies are often purchased in one of three situations: by families where the parents’ employers don’t contribute to dependent care, by parents who can’t afford to insure themselves or by those who can’t get their own coverage but want to cover their kids.
Sorry, this looks like yet another example of Obamacare’s unintended consequences.
We’re the government and we are here to help you.