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Less Coverage for Kids

Recorded on August 8, 2011

From The Heritage Foundation, I'm Ernest Istook.

Insurance companies are getting out of the business of writing children's health policies. Thirty-nine states have seen carriers exit that market. In 17 states there's no company left that writes child-only health insurance.

The reason is that Obamacare requires coverage of children's pre-existing conditions. Parents of healthy kids know they can wait to buy coverage, not getting it unless their kids first get sick.

That makes it impossible for companies to spread risks among a mix of healthy people and those who are ill—which is the way insurance works.

And it's going to get worse. In a couple of years, Obamacare dictates that adult health policies also must cover pre-existing conditions. It's a big government mandate that makes many insurers go out of business.

This guaranteed-issue insurance is popular among people who want to buy it—but that's useless if nobody can afford to sell it.


From The Heritage Foundation, I'm Ernest Istook.