The recently passed health insurance reform law will touch most Americans. A major change affecting individual health insurance is a prohibition on denial of coverage for preexisting conditions. Of course, there is the requirement for all Americans to have insurance. Insurers are also prohibited from putting yearly and lifetime coverage limits. There is the group health exchanges to come that could lower policy costs. Hence, the Obama effects on individual health insurance will impact the biggest shortcomings in the prevailing market for individual health insurance.
The same time the reform bill was made law we had news rising policy rates. At the same time a report illustrated that the middle class lost health insurance faster than any income group and had the least protections. In the individual market, they were vulnerable to insurers who have denied coverage for those with preexisting conditions and charged expensive and rising premiums.
Insurer placed limits on coverage was a major hurdle in the expansion of the individual market. Other major challenges were affordability and adequacy of coverage. One study has shown that conditions denied coverage varied according to the insurer. At the same time there is no bar on what insurers may levy.
In a majority of states, insurers are permitted consider the health history of an applicant. Whereas, employer sponsored group plans provide coverage for everyone, most states have no guarantee individuals can get insured. Some states taken insurers to task for revoking coverage, whereas, others have not. Prior to the general elections there was a bipartisan sponsored bill that would have required everyone to have coverage and insurers to sell insurance to all applicants.
Public hospitals have been the victims of the health coverage crisis. They have provided charity and emergency care for those not aided by local governments, the state or even the federal government. They provide care for the uninsured, those under insured by Medicaid, which reimburses at below cost rates. These hospitals cannot compete with better funded private and nonprofit hospitals for patents covered by private health insurance. Meanwhile, the cost of caring for the uninsured and under insured has risen over the years; while taxpayer support has not risen.
Employers faced with rising policy costs are considering their options in shifting more of the burden to employees. A study of claims data has shown that that the smaller employers saw costs rise more than others. And, another report has revealed that the cost for employer provided plans rose by over forty percent in eight-years. The cost for employees paid for individual plans increased more by over sixty percent.
Large corporate employees have enjoyed the most secure and highest quality coverage in the nation during their employment. They have not been victimized during their employment with revocation or denial due to preexisting conditions. Nevertheless, a recently released annual survey by the National Business Group on Health has indicated that the impact of rising costs means this island of safety is about to be buffeted. This surveyed large employers indicated they were considering shifting more of the cost on their employees.
As indicated by a study carried out jointly by Harvard researchers illness led to majority of filings for bankruptcy in a year preceding the housing bust. The majority of filers had insurance insured and most of them were middle class and college educated. They lost their jobs due to illness and with it their insurance. The study revealed that you are a serious illness away from bankruptcy. Insurance policies may offer little help when a serious illness strikes. Bills that were not paid by insurers averaged over 10,000 dollars for those with private insurance. There are big Obama effects on individual health insurance coverage.
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