| The health care reform bill recently enacted | | | | choosing to drop child only coverage. Anthem Blue |
| directly addresses the needs of sick children | | | | Cross has announced it will drop child only |
| previously unable to obtain health insurance | | | | coverage in 10 states. Effective October 1 of this |
| coverage. Beginning September 23, 2010 insurers | | | | year, Aetna will drop its coverage in 32 states. |
| must cover children regardless of their health | | | | Cigna will halt coverage in 10 states. |
| histories. So this should instantly solve the problem | | | | The unfortunate consequence is that healthy |
| facing scores of families - right? Think again. | | | | children will be thrown into the same quagmire as |
| Every action has an equal and opposite reaction. | | | | currently unhealthy children with no insurance. |
| This is illustrated by what seems to be happening | | | | Many currently healthy children may not get the |
| to child only health care plans in many states. | | | | care needed, and may become sick in the future. |
| Insurers are opting to exit the market, rather | | | | So what are families to do? For families with |
| than deal with the well documented effects of | | | | currently sick children look to publicly funded |
| adverse selection that this new rule imposes. | | | | insurance programs in your state. Also, the newly |
| Adverse selection refers to the fact that sick | | | | formed high risk pools may be an option for |
| people will be most motivated to purchase | | | | those uninsured for more than six months. For |
| coverage, while healthy people are most likely to | | | | healthier families, try to find the most affordable |
| drop coverage, or never buy it in the first place. | | | | family coverage available either through your |
| Families with sick children will immediately move to | | | | employer, or in the individual market. |
| purchase this coverage, driving up loss rates for | | | | Regardless of your political persuasion |
| the insurance carriers. Insurance carriers will then | | | | government regulation always has unintended |
| have to raise rates for all, causing families with | | | | impacts. It is difficult to forecast how the child |
| healthy children to drop coverage. This is a recipe | | | | only health insurance market will change over |
| for financial ruin for the insurance carriers. | | | | time. Learn how the system works and get |
| Insurance companies understand the effects of | | | | covered before getting sick if you can. |
| adverse selection very well, and they are | | | | |