Guaranteed Issue For Your Health Insurance
As you probably have heard, President Obama is requiring insurers to sell healthcare policies to everyone regardless of their preexisting conditions.
This “guaranteed issue” will be reflected in the extraordinarily high premiums that reflect future expected costs when a patient has an illness.
With “community rating” which Congress would like to tack on to the requirement, the insurance companies will no longer be able to charge higher premiums for high risk individuals.
Averaged out across the board, young healthy people will be paying the same amount for their health policy as older people with medical problems.
Sound fair? Well, that depends on your age.
Because individual mandates where the younger pay for the sicker, older and higher-income brackets, along with guaranteed issue and community ratings, most people are not aware of the fine points of the healthcare reform.
The 20 somethings may have a lower income and would be required to pay more than what would be needed for their healthcare. They might then decide to forego health insurance and merely pay the fine for not having it if it is cheaper than the policy.
Yet for all the debates and rhetoric, the new mandates may actually blow-up and accentuate healthcare problems.
I hope this is not what the government had in mind!
- September 21st
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