Jul 17, 2009 9:05
Am I understand that on page 16 is a provision to deny private insurance. Is this true? - Show 10 Answers
A1: Yes. It is in Section 102 of the house bill where if private insurance providers cannot open new policies and your private insurance coverage will be denied if the insurance company changes your rate or any other available coverage in your plan.
[Answer submitted on Jul 22, 2009 9:32 PM]
A2: No, that is untrue. Pages 16 and 17 define "Grandfathered" insurance plans (plans that currently exist and are not subject to new restrictions) and part of the restriction is that the plan can not accept new enrollments.
The restrictions in question are for consumer protection. For example, preventing insurance companies from dropping individuals from coverage due to medical conditions.
It makes sense because if any plan that exists now could avoid the law and continue to enroll people, the restrictions wouldn't have much of a reason to exist.
[Answer submitted on Jul 23, 2009 9:14 PM]
A3: Actually, A2's answer is WRONG. Section 102 says you can keep your covered plan so long as that company does not enroll any new individuals after the government plan goes into effect. This means that your current plan will soon go out of business because it cannot sell any new policies.
[Answer submitted on Jul 25, 2009 9:24 AM]
A4: Undoubtedly, that depends on who you are, how much you make and what your political affiliation is.
[Answer submitted on Jul 28, 2009 9:38 AM]
A5: To add to A3's last sentence:
And as the membership in a group dwindles due to attrition, the rates will go up because the remaining members are getting older, using more services, and no new members to help spread the cost.
[Answer submitted on Aug 4, 2009 8:56 AM]
A6: Actually and factually, A1 and A2 are wrong.
Section 102 says the PLAN (not company) can not enroll new people into the Grandfathered PLAN (not company) in order for it to keep GRANDFATHERED status and be immune to the bill's regulations.
They also cannot raise the rates sharply or make other alterations to the plan. It becomes a static plan. The Company's NEW plans will have to conform to the bill's regulations.
More info at:
Bill does NOT make Private Health Insurance Illegal! | NowPublic News Coverage
and
THOMAS (Library of Congress) (search for bill number H.R. 3200)
[Answer submitted on Aug 5, 2009 9:28 PM]
A7: A2 is correct and A3 is way off. The rule is that they can't purge people with existing conditions leaving people without, or far less coverage while they are signing up other "more desirable" low use customers.
The wonderful caveat of the plan is that "all people have to be covered". This is pure genius and will lower cost for all of us, and open up more availability.
[Answer submitted on Jul 28, 2009 7:15 PM]
A8: As I understand it, private insurers (i.e. carriers) who will likely have grandfathered plans, will ALSO be able to offer plans through the new Health Exchange as long as the new offerings conform to the mandated basic coverages and premium factors as set by the Exchange. They won't necessarily go out of business, unless of course the Public Option ends up having an unfair cost advantage over the private plans offered through the Exchange.
[Answer submitted on Aug 6, 2009 1:38 PM]
A9: It does not deny private insurance plans. Private plans are allowed to remain in effect after this bill so long as A) they do not enroll new individuals, B) they do not change the terms or conditions of the plan in effect, C)there are restrictions on increasing premium costs and D)they have 5 years to to change their plans to meet the same requirements as the "essential benefit package" offered by the new "national health care exchange program". So, in a nutshell, all private plans will eventually have to change to be the same as the government exchange plans, at the same cost and with the same regulations.
[Answer submitted on Aug 3, 2009 2:28 PM]
A10: How long does moderation take, please?
[From the moderator: Vacation called. Things should be back up to speed in a few days.] [Answer submitted on Aug 5, 2009 8:45 PM]