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Obama May Let Insurers Up Fees On Kids

Discreetly tucked away in the ‘Money & Policy’ section of the New York Times:

U.S. to Let Insurers Raise Fees for Sick Children

October 13, 2010

WASHINGTON — The Obama administration, aiming to encourage health insurance companies to offer child-only policies, said Wednesday that they could charge higher premiums for coverage of children with serious medical problems, if state law allowed it.

How gracious of Mr. Obama. Who can count all his tender mercies to us?

Though, notice that when the government are backpedals they always hide behind the state insurance boards. And yet we never hear about these boards when they are making their grand pronouncements.

Earlier this year, major insurers, faced with an unprofitable business, stopped issuing new child-only policies. They said that the Obama administration’s interpretation of the new health care law would allow families to buy such coverage at the last minute, when children became ill and were headed to the hospital.

Notice that the 2,300 pages of the ‘healthcare law’ are now being treated like holy writ that require priests and scholars ‘to interpret.’

In September, the administration said that insurers could establish open-enrollment periods — for example, one month a year — during which they would accept all children.

Now, on Wednesday, the administration, answering a question raised by many insurers, said they could charge higher premiums to sick children outside the open-enrollment period, if state laws allowed such underwriting, as many do

Of course, all of Mr. Obama’s recent promises have an expiration date of November 3, 2010.

The difficulty in preserving access to child-only insurance policies is the latest example of unintended consequences of the new law, the Patient Protection and Affordable Care Act

There will be plenty of "unintended consequences" coming out of Obama-Care, but the destruction of the private insurance industry is not one of them. On the contrary, that was its primary intention.

The problem may be solved in 2014. If Democrats can beat back Republican efforts to dismantle the law, most Americans will be required to carry health insurance, starting in 2014, and insurers will be required to accept all applicants, regardless of pre-existing conditions.

How exactly will this solve the problem of insurance profitability? Are they going to make up for their losses on volume?

The new policy statement, issued Wednesday by Kathleen Sebelius, the secretary of health and human services, came with a fresh blast of criticism of the insurance industry.

“Unfortunately,” Ms. Sebelius said, “some insurers have decided to stop writing new business in the child-only insurance market, reneging on a previous commitment made in a March letter to ‘make pre-existing condition exclusions a thing of the past.’ ”

Naturally, the administration has to show its whip hand when it is forced to make this temporary concession. The insurance company have to be made to remember that they only exist at the pleasure of the White House.

Insurance industry lobbyists say Ms. Sebelius mischaracterized their commitment. They denied that they had promised to continue offering child-only policies.

When will these miscreants learn not to talk back?

In a series of questions and answers intended to clarify its reading of the law, the administration said Wednesday that insurers had two options. They can enroll all children year-round, or decline to enroll all children outside the open-enrollment period.

Federal officials specifically rejected an option proposed by many insurers, which wanted to be able to accept healthy children and reject sick children outside the open-enrollment period. This option is “inconsistent with the language and intent” of the law, Ms. Sebelius said

Which has nothing to do with insurance, and everything to do with making health insurance companies provide welfare by a different name.

This article was posted by Steve on Thursday, October 14th, 2010. Comments are currently closed.

6 Responses to “Obama May Let Insurers Up Fees On Kids”

  1. proreason says:

    Why bother with laws at all. Just let Obamy do whatever he likes.

    This pretend-democracy just doesn’t seem to be working out as he dictates.

  2. NoNeoCommies says:

    Why not make the kiddies pay more?
    They will be supporting all of Omama’s marxist policies anyway.
    What’s a few bucks more when the government mistreats you from cradle to grave.

  3. Papa Louie says:

    “Federal officials specifically rejected an option proposed by many insurers, which wanted to be able to accept healthy children and reject sick children outside the open-enrollment period.”

    Why insure your healthy children if you have the option to insure them as soon as they get sick? When only sick children have insurance, the costs will skyrocket and it will become unaffordable for more and more families to insure their children even when they do get sick. Obamacare creates a viscious cycle that will result in higher costs and fewer people being insured than are insured today — just the opposite of what was promised.

  4. canary says:

    “They denied that they had promised to continue offering child-only policies.”

    I don’t know the insurance companies promised anything. I think people thought insurance companies would be forced to by the Obombie. I think the news jumped the gun on telling people of the changes which would go into immediate action. This is a good thing, because Obama voters will be scratching their heads.

  5. Tater Salad says:

    Obamacare and his Marxist czars and socialists in the White House are showing very strong signs of being on the same course as the dark past of the world.


  6. Maybe it’s just me, but screwing up child-only policies for ill children, and jacking up the premiums on the same, makes me think one thing:

    The Obama administration will 1) encourage prenatal genetic testing (read: eventually mandate it) and 2) urge abortions for abnormal children (read: eventually mandate it). No better way to keep their pro-abortion allies in business than to send in a steady stream of pregnant women with “defective” babies.

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