Navigation Links
New AHIP Report Takes a Ten Year Look at the Unintended Consequences of State Efforts to Change the Insurance Market

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 A number of these initiatives were repealed or significantly changed within a few years of implementation.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: )

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:

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:
(Date:11/27/2015)... ... November 27, 2015 , ... Indosoft Inc., developer and distributor ... Asterisk 11 LTS (Long Term Support) into its Q-Suite 5.10 product line. , ... up-to-date with a version of Asterisk that will receive not only security fixes, ...
(Date:11/26/2015)... ... November 26, 2015 , ... Inevitably when people think Thanksgiving, they also ... buy during the Black Friday and Cyber Monday massage chair sales to ... Internet high and low to find the best massage chair deals, they can see ...
(Date:11/26/2015)... ... November 26, 2015 , ... Somu Sivaramakrishnan announced ... franchise owner, Somu now offers travelers, value and care based Travel Services, including ... sales, as well as, cabin upgrades and special amenities such as, shore excursions, ...
(Date:11/26/2015)... ... November 26, 2015 , ... Jobs in hospital medical ... professionals and offered by healthcare staffing agency Aureus Medical Group . ... of October 2015 among those searching for healthcare jobs through the company’s website, ...
(Date:11/26/2015)... Mass. (PRWEB) , ... November 26, 2015 , ... ... thorough second medical opinion process, participated in the 61st annual Employee Benefits Conference. ... Plans and took place Sunday, November 8th through Wednesday, November 11th, 2015. The ...
Breaking Medicine News(10 mins):
(Date:11/26/2015)... , November 26, 2015 /PRNewswire/ ... --> adds "Global ... and "Investigation Report on China Repaglinide ... 2021 forecasts data and information to ... . --> ...
(Date:11/26/2015)... DUBLIN , Nov. 26, 2015 ... the addition of the "2016 Future Horizons ... Monitoring (TDM) Market: Supplier Shares, Country Segment Forecasts, ... offering. --> ... comprehensive analysis of the Italian therapeutic drug monitoring ...
(Date:11/26/2015)... , November 26, 2015 /PRNewswire/ ... announced the addition of the  "2016 ... the European Cell Surface Marker Testing ... Opportunities"  report to their offering.  ... the addition of the  "2016 Future ...
Breaking Medicine Technology: