The trade group for major health plans is now endorsing guaranteed coverage for individuals with pre-existing medical conditions, provided the move goes along with an enforceable mandate requiring everyone to purchase health insurance.
America’s Health Insurance Plans said the change came after a nationwide “listening tour” where top officials met with consumers in town hall-like settings in recent months. “AHIP’s board of directors is responding to the concerns of the American people by offering a workable solution to ensure that no one is left out of the healthcare system because of their age, income or employment status,” Karen Ignagni, AHIP’s president and chief executive officer, said in a written statement.
Under the new proposal, health plans offering coverage through the individual health insurance market would be required to offer coverage to all applicants as part of a universal participation plan in which everyone is required to maintain health insurance. Massachusetts has such a mandate, and levies fines on residents who don’t have health insurance.
Health insurers have been under fire in recent years from state regulators for revoking coverage of individuals after they fall ill, and have faced fines and other penalties in California for such actions.
The proposal was met with criticism from at least one consumer group. “If consumers can’t afford coverage, or refuse to pay for a junk policy, they’ll face tax penalties,” Jerry Flanagan of the Santa Monica, Calif.-based group Consumer Watchdog said in a written statement. “Turning the U.S. government into a collection agency for for-profit health insurers is not universal healthcare, it’s full employment for HMO executives.”
[ via Rebecca Veseley, Modern Healthcare's Daily Dose ]