At least six major companies -- including
Anthem, Aetna, Cigna and Humana -- have said they will stop writing new
policies for individual children not covered by their parents' or
other plans, insurance officials said.They blamed health reform mandates taking effect Thursday requiring
companies that write such policies as of that date to also cover sick
children up to age 19.
Of course, President Obama and the rest of the Democrats have already
begun pretending to shake their fists in anger at the insurance
companies for being evil and putting profits over people. From the Washington Post:
But officials of the Obama
administration said the move contradicted a letter from the leader of
one of the insurance industry's most important trade groups after the
law's adoption in March. Karen Ignagni, president of America's Health
Insurance Plans, expressed support for the law's provisions concerning
children with preexisting conditions and promised to "fully comply"
with them."We expect [insurance companies] to honor that commitment. Insurers
shouldn't break their promise and turn their backs on some of our most
vulnerable Americans," said Jessica Santillo, a spokeswoman for the
Department of Health and Human Services.
Frankly, the complaining from Obama is just sad. Either it is hollow
grandstanding, or Obama actually thought that the private, for-profit
health insurance companies were honest brokers he could trust to not try
to find loopholes in the new regulations. If it is the latter,
President Obama's much-touted intellect needs a reevaluation.
At this point, for Democrats to blame the for-profit insurance
companies is pathetic. Private insurers are the scorpion in the story of
turtle and the scorpion. They have proven for decades they will do
anything to avoid regulation, and will always put profits over the
health care needs of regular Americans. Heck, by law, as for-profit
corporations, they are required to put profits over everything else.
Democrats let insurance companies hop on their back, and now they are
smack-dab in the middle of the river with them. Don't scream when they
sting you-it is just their nature.
Of course, watching this recent action should fill all Americans with
dread. Democrats actually chose to expand coverage to millions by
forcing them to buy insurance exclusively from these same misbehaving
private companies. If Democrats really believe the job of the government
is to insure every American, then they should have had the government
do it directly-and more cost effectively-through expanding Medicare for
all or a public option, instead of outsourcing it to untrustworthy
private insurers that put profits before people.
Signs don't point to sunny skies ahead
This most recent revelation, cutting out new child policies, combined
with the latest massive and apparently unstoppable rate hikes is just
more proof of what I spent months warning about: the new law leaves the health insurance companies completely unchecked and the regulations are almost meaningless due to a lack proper enforcement.
Frankly, given the billions at stake, and the drive of the for-profit
insurance companies to maximize profits, I don't even know of a really
well-designed regulator system could prevent insurers continuing to
exploit loopholes.
This might be one of the first examples how, due to poor design, weak
regulation, and weaker enforcement, the new law fails to live up to
expectations, but I promise you (as someone who read the entire law
thoroughly, which apparently even Sen. Max Baucus didn't) it won't be the last.