
The September health care reform mandates will decrease the health care insurance alternatives available for kids. All over the country, many private medical insurance carriers appear to have decided not to insure youth who purchase standalone policies after September 22nd. Not all carriers have announced their decision on this issue, but many that have are choosing eliminate these types of policies.
Youth who apply for medical insurance with at one or both parents will not be affected. children who are covered by standalone policies that were effective prior to the mandate will be allowed to keep their existing policies.
Who’s the bad guy here? We can fault the insurance carriers. However, asking an insurance carrier to insure unhealthy people is like asking banks to underwrite loans for people with poor credit scores. Congress might more at fault than the insurance carriers.
Health care insurance carriers do make tons of money but their margins are miniscule. They don’t make tons of money on per policy. Adding just a few additional significantly unprofitable people can make them lose money or make their premiums unaffordable.
A unsophisticated example would involve an insurance carrier that insures one hundred people against cardiac problems. Each person pays a thousand and twenty dollars a year. One of the insured people has a heart attack annually. It costs the carrier $ 100,000. The company pays the health care bills . It earns $ 2,000..
