Post border

Are Child-Only Health Insurance Plans Falling By The Wayside?


Image: Pink Sherbet Photography under CC 3.0

Several health insurers, including Aetna and Anthem Blue Cross, will soon stop selling dedicated health insurance plans to children. These plans often appeal to parents who believe they cannot afford health insurance for the entire family, but decide to sacrifice for the sake of their kids. Still, children’s health insurance is a relatively small market by itself.

They blame newly effective provisions of the healthcare reform law that prevent them from denying coverage to children with pre-existing conditions, which means that those plans will no longer be cost-effective for them to offer.

Which states will lose this option? So far, they are:

  • California
  • Florida
  • Connecticut
  • Illinois
  • Virginia
  • Pennsylvania
  • Texas
  • Tennessee
  • Colorado
  • Arizona

Although there is a legitimate argument for the moral hazard of allowing adults with pre-existing conditions to forgo paying into the system when they are healthy and joining when they are sick, children have no choice in the matter. (The individual mandates that discourage this practice won’t go into effect until 2014–and may not survive a Supreme Court challenge.) Furthermore, unlike adults, children never contribute to their own health status by choice.

Tags: , , , , ,

Post border

Leave a Reply