Health Insurance Companies Find Loophole In Children’s Coverage
Due to the sheer length of the healthcare reform bill, it was probably inevitable that there would be a handful of errors sprinkled in. However, this one is pretty significant. It has the potential to affect what has been touted as one of the legislation’s immediate impacts: health coverage for children.
President Obama has promoted the benefit targeted at children, which is intended to prevent insurers from denying children coverage due to a pre-existing health condition. Such a provision is clearly popular with the public. Eliminating restrictions on pre-existing conditions is favored by the public in general–although they are split on the best way to go about it–but it is even more appealing for children. Unlike adults, who sometimes contribute to their own conditions, kids aren’t ill by any fault of their own. While still controversial, the promise of that immediate benefit has caused some people to come around to healthcare reform.
Washington Health Insurance Company Halts Child-Only Policies
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.