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•Health Care Bill Bait and Switch: Insurers Had Wriggle Room to Refuse Coverage for Pre-Existing Conditions - 03/29/2010 - Yves Smith
Monday, March 29, 2010
Health Care Bill Bait and Switch: Insurers Had Wriggle Room to Refuse Coverage for Pre-Existing Conditions

Two reasons that many people went along with the Obama administration’s health care reform proposal was that it was purported to extend coverage to the uninsured and would eliminate the ability of insurers to deny coverage (including rescind existing policies) for pre-existing conditions.

The latter claim was false (more on that shortly) and some gaps have already come to light. Consider this story from the New York Times, “Coverage Now for Sick Children? Check Fine Print.” Here was the sales talk:

Mr. Obama, speaking at a health care rally in northern Virginia on March 19, said, “Starting this year, insurance companies will be banned forever from denying coverage to children with pre-existing conditions.”

Here’s the reality:

William G. Schiffbauer, a lawyer whose clients include employers and insurance companies, said: “The fine print differs from the larger political message. If a company sells insurance, it will have to cover pre-existing conditions for children covered by the policy. But it does not have to sell to somebody with a pre-existing condition. And the insurer could increase premiums to cover the additional cost.” …

But, insurers say, until 2014, the law does not require them to write insurance at all for the child or the family. In the language of insurance, the law does not include a “guaranteed issue” requirement before then…

Starting in January 2014, health plans will be required to accept everyone who applies for coverage.

Yves here. So that means everything is hunky dory starting in 2014, right? Don’t assume that.

http://www.nakedcapitalism.com/2010/03/health-care-bill-bait-and-switch-insurers-have-wriggle-room-to-refuse-coverage-for-pre-existing-conditions.html