Los Angeles Times: Some major health insurance companies have decided to stop selling policies for children rather than comply with a new federal healthcare law that bars them from rejecting youngsters with preexisting medical conditions.
Anthem Blue Cross, Aetna Inc. and others will halt new child-only policies in California, Illinois, Florida, Connecticut and elsewhere as early as Thursday when provisions of the nation’s new healthcare law take effect, including a requirement that insurers cover children under age 19 regardless of their health histories.
The action will apply only to new coverage sought for children and not to existing child-only plans, family policies or insurance provided to youngsters through their parents’ employers. An estimated 80,000 California children currently without insurance â€” and as many as 500,000 nationwide â€” would be affected, according to experts.
Insurers said they were acting because the new federal requirement could create huge and unexpected costs for covering children. They said the rule might prompt parents to buy policies only after their kids became sick, producing a glut of ill youngsters to insure. As a result, they said, many companies would flee the marketplace, leaving behind a handful to shoulder a huge financial burden.
The insurers said they now sell relatively few child-only policies, and thus the changes will have a small effect on families.
“Unfortunately, this has created an un-level competitive environment,” Anthem Blue Cross, California’s largest for-profit insurer, said in a statement declaring its intention to “suspend the sale of child-only policies” on Thursday, six months after the healthcare overhaul was signed.
The change has angered lawmakers, regulators and healthcare advocates, who say it will force more families to enroll in already strained public insurance programs such as Medi-Cal for the poor in California.
The White House weighed in Tuesday, condemning Anthem corporate parent WellPoint Inc. and others that plan to stop selling child-only policies.
“It’s obviously very unfortunate that insurance companies continue to make decisions on the backs of children and families that need their help,” White House Press Secretary Robert Gibbs said at a news briefing.