Day 6 of 206- reading the Senate Health Care Bill

• Prohibits insurance plans from denying people based on a pre-existing condition
• Sets rules for insurance plans regarding the increase of premiums
  • Can only increase based on:
    • Individual vs. Family
    • “Rating area” (geography within a state)
    • Age
      • No one can be charged more that 3 times the lowest rate offered by that plan
      • Government will establish “age bands” by which insurance plans will rate people
    • Tobacco use (can only raise premiums 50% for this)
• Requires insurance plans to accept every employer and individual who applies for coverage
• Requires plans to renew coverage no matter what
• Prohibits plans from setting up rules of eligibility based on health status or

This all sounds great.  I just wonder how health insurance plans are going to abide by these rules.  On the one hand, they are required to never turn anyone away or drop coverage based on health status, no matter how ill the patient.  This sounds like a reasonable requirement.  However, they also are forbidden from raising premiums on these patients whose health care will be very expensive.  So, where will the money come from?  Caring for people with chronic illness does cost money.  I’m not suggesting that people with serious illness should be dropped or denied coverage.  And, in today’s system it seems impossible for anyone with serious illness to be able to afford their own health care out of pocket, so who will pay?  If the insurance plans cannot raise premiums, but are required to accept and care for sicker patients, where will the money come from?  So far this bill does not offer a solution.  Insurance plans will be forced to find ways to raise premiums and fees in other ways.  Health care companies will spend much effort and time figuring out how to survive under this system, rather than figuring out how to better care for patients.