The Rocky Road to Healthcare Reform
It isn't going to be easy getting healthcare reform to happen. Let's start with the lawsuits by some of the states. The premise is the federal government can't tell people or states that everyone has to have insurance. Most of the constitutional scholars on both sides do give it much of a chance. What it does is stir the fires of emotion and fear while continuing the misinformation of reform being socialistic or even communistic. If having health insurance is socialistic, then why isn't mandatory car, mortgage, or home insurance also socialistic?
Then there is the battle of the insurance company vs the state of Massachusetts. The insurance companies wanted to raise rates as they do every year and they wanted the usual pass. Given the current climate, the state flexed its muscle and said no to any rate increases. The insurance companies fought back with putting a freeze on new enrollees. In Massachusetts, you are fined already if you don't have insurance. The insurance companies stated they needed time to assess the damage from no rate increases and how they could proceed. They filed suit in court and asked for an immediate review. The courts ruled at this time that the state was in its right to deny rate increases. The insurance companies said they would start taking new clients again. Last week, they sent out letters to current members that all rates would stay the same as last year through 2010. In the meantime, the insurance companies have filed with the Department of Insurance to allow the increase in rates.
Another issue with the healthcare reform is it doesn't solve as many immediate problems as hoped. For instance, I have a client who will be coming off COBRA and has a pre existing condition. COBRA is considered a creditable insurance coverage. Her state has a high risk pool but the cost is prohibitive. The new risk pools to be set up for June will be equal to the market cost of regular health insurance plans. The law states there has to be six months without any credible coverage for a pre existing condition. My client will be left without any insurance because of her pre existing condition. Maybe she will be able to get regular insurance but it is not hopeful. Will she have to wait six months to get insurance? No one seems to have an answer.
Between the insurance companies, the false rhetoric on the bill and the loopholes, health care reform has a rocky road ahead. Keeping up with the maneuverings is going to be more work than I planned for!
Posted by HealthCare Whisperer at 4/26/2010 11:56 AM 
Categories: healthcare reform, COBRA
Tags: insurance healthcare reform COBRA
Categories: healthcare reform, COBRA
Tags: insurance healthcare reform COBRA
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