Tuesday, March 24, 2009

Health Insurers Consider Dropping Risk Rating

So if you buy individual insurance you might be able to still get insurance even if you have an existing medical condition.

In the letter, the two insurance industry groups said their members are willing to "phase out the practice of varying premiums based on health status in the individual market" if all Americans are required to get coverage.

"The offer here is to transition away from risk rating, which is one of the things that makes life hell for real people," said health economist Len Nichols of the New America Foundation public policy center. "They have never in their history offered to give up risk rating."

In other words they don't want the government to price them out of business so they are forced to offer a better product. That seems like an okay plan as long as there isn't some sort of health epidemic in the US. I wonder if they will let healthy people pay less or will they end up paying more?

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