Navigation Links
New AHIP Report Takes a Ten Year Look at the Unintended Consequences of State Efforts to Change the Insurance Market
Date:9/7/2007

WASHINGTON, Sept. 7 /PRNewswire-USNewswire/ -- As states consider proposals to expand access to health care coverage, a new study assesses the impact of prior efforts in states across the country. Over the past decade, numerous states have launched "insurance reforms" with significant unintended consequences. A number of these initiatives were repealed or significantly changed within a few years of implementation. The study by Milliman, Inc. on behalf of America's Health Insurance Plans (AHIP) examined what happened.

(Logo: http://www.newscom.com/cgi-bin/prnh/20040830/AHIPLOGO )

Specifically, the report examined eight states that enacted various forms of "guarantee issue" and "community rating" in the 1990's, including Kentucky, Maine, Massachusetts, New Hampshire, New Jersey, New York, Vermont, and Washington. The report found that these initiatives can have unexpectedly negative consequences for consumers, and can limit access to coverage.

"This report offers important lessons. It demonstrates that insurance reforms without universal access drives up health care costs for consumers and encourages individuals who have health insurance to drop insurance and take the financial risk of being uninsured," said Karen Ignagni, President and CEO of AHIP.

Guarantee issue requires insurers to sell an individual health insurance policy without regard to a person's health and community rating requires that all consumers pay the same or similar premiums without regard to age or gender. According to the report, these initiatives have the potential to cause individuals to wait until they have health problems to buy insurance. This could cause premiums to increase for all policyholders, increasing the likelihood that lower-risk individuals leave the market, which could lead to further rate increases. If this continues, the pool or market could essentially collapse or shrink to include only the high risk population.

"While these reform goals were laudable, they frequently had unintended consequences that disrupted the individual marketplace," said Leigh Wachenheim, FSA, MAAA, Principal and Consulting Actuary at Milliman, Inc.

Overall, the report found that states that implemented guarantee issue and community rating saw a rise in insurance premiums, a reduction of individual insurance enrollment, and an exodus of health insurers from the individual insurance market. In addition, the report found no significant decrease in the uninsured population in states that implemented these initiatives, often a stated goal of legislators.

Consequently, several states that initially implemented guarantee issue and community rating have since repealed or modified their laws with the intent of stabilizing the insurance marketplace and providing consumers more choice and access to coverage.

Click here to view the complete study: http://www.ahip.org/content/default.aspx?docid=20736.

AHIP is the national trade association representing nearly 1,300 member companies providing health insurance coverage to more than 200 million Americans.


'/>"/>
SOURCE America's Health Insurance Plans
Copyright©2007 PR Newswire.
All rights reserved

Related medicine news :

1. No harm in reducing prenatal check up to 3 - 6 times says WHO report
2. Researchers at Cornell University as been reported using research fund by false claims
3. Autopsy reports could be valuable and informative
4. China reports declining number of SARS Cases
5. Russia Reports First SARS Case
6. Report on the Safety and Effectiveness of Melatonin supplements
7. WHO report asks for improved healthcare for mother and child
8. Research reports that c-section deliveries are rising
9. Jharkhand reports 13,000 Malaria cases
10. Sepsis Death Reported With Mifepristone – FDA Issues Warnin
11. Experts Insist That Neonatal Herpes Be Reported Regularly
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:6/26/2016)... ... , ... Quality metrics are proliferating in cancer care, and are derived from ... of the beholder, according to experts who offered insights and commentary in the current ... For the full issue, click here . , For the American Society of ...
(Date:6/26/2016)... ... ... legally blind and certified personal trainer is helping to develop a weight loss fitness plan ... fix the two major problems leading the fitness industry today:, , ... They don’t eliminate all the reasons people quit their exercise program ...
(Date:6/25/2016)... , ... June 25, 2016 , ... The temporary closing of Bruton Memorial Library on ... Observer , brings up a new, often overlooked aspect of head lice: the parasite’s ability ... fumigation is not a common occurrence, but a necessary one in the event that lice ...
(Date:6/25/2016)... (PRWEB) , ... June 25, 2016 , ... ... athletes and non-athletes recover from injury. Recently, he has implemented orthobiologic procedures as ... City area —Johnson is one of the first doctors to perform the treatment. ...
(Date:6/24/2016)... Marne, Michigan (PRWEB) , ... June 24, 2016 , ... ... To deal with these feelings, many turn to unhealthy avenues, such as drug or ... Center of Marne, Michigan, has released tools for healthy coping following a traumatic event. ...
Breaking Medicine News(10 mins):
(Date:6/24/2016)... , June 24, 2016  Global Blood ... biopharmaceutical company developing novel therapeutics for the treatment ... today announced the closing of its previously announced ... stock, at the public offering price of $18.75 ... offering were offered by GBT. GBT estimates net ...
(Date:6/24/2016)... -- Dublin ... the " Global Markets for Spectroscopy Equipment" ... This report focuses on the global market ... its applications in various applications. The report deals with ... main industries: pharmaceutical and biotechnology, food and beverage, and ...
(Date:6/24/2016)... , June 24, 2016 The Academy ... of recommendations that would allow biopharmaceutical companies ... with entities that make formulary and coverage decisions, a ... "value" of new medicines. The recommendations address ... not appear on the drug label, a prohibition that ...
Breaking Medicine Technology: