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

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Consequently, several states that initially implemented guarantee issue and community rating have since repealed or modified their laws with the intent of stabilizing the insurance marketplace and providing consumers more choice and access to coverage.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


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SOURCE America's Health Insurance Plans
Copyright©2007 PR Newswire.
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