Daily News Updates - Health Insurance News

Paul Revere, but not Robin Hood, Pt.3 -- The Trojan Horse

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So here’s the trojan link. Just like the credit card industry, these private health insurer may be able to choose what state is going to regulate them or not. They would be able to locate in a state with no regulations and sell health insurance in any state, but escape that state’s protective regulations. With the help of a bill presented by McCain's Arizona colleague John Shadegg, these health insurance companies won’t even have to move. All they would have to do is some paperwork with that state’s Insurance Commissioner and pay some taxes to that state. All those companies, as with the credit card issuing banks, will want to take full advantage of this loophole so they can command the private health insurance market on their own terms.

So if this bill is passed, a major shift is likely to follow the path of the credit industry. Health insurers will have little incentive to be bound by the protective regulations of the states. The risk pools will be segmented by risk liability, meaning that health insurance companies can adjust plans based solely on risk. They can guarantee max profits by hiking premiums rates to people in medical need and lower premium prices for those who require little coverage by creating different pools. The destitute will probably be worse off then they already are. It seems like a sequel of an old Bush ‘B’ plan that failed of its own right, but now is sewn into the lining of the garment and not so noticeable.

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