This morning, one day after the Supreme Court ruled in favor of the constitutionality of the Affordable Care Act, NPR aired an interview with ICMG member Bill Stapleton, CEO of Health Plan One, a Gold Sponsor of ICMG (“After Years of Uncertainty, A Health-Care Business Gets an Answer”, heard on NPR’s Morning Edition, June 29, 2012).
Asked about the interview, Bill told me in an email today, “The main points I was trying to make to [interviewer Chana Joffe-Walt] was that the individual market is unworkable with or without the mandate, and therefore the Supreme Court ruling is not terribly consequential – unless they throw the whole law out. In 2014 when medical underwriting and gender rating is prohibited, and age rating is limited, costs will go up substantially. Given that the mandate penalty is low, there is significant risk of massive adverse selection, like what has occurred in New York City where a family policy costs $60,000 per year (that’s right, no typo)!”
Bill continued, “Related to the cost increase, insurers will be unable to get the necessary rate increases to keep up with trend AND the new rating and benefit rules. Hence, insurers will likely reduce or eliminate broker commissions as they have in almost all non-underwriting states (e.g. NY, RI, MA, ME, VT). We are very focused on the Medicare market at the moment.”
We appreciated hearing Bill’s thoughts on these issues facing many ICMG members, and hope that the network available through this organization will provide innovative solutions and strategies going forward. What are your thoughts and suggestions?Follow Us on Twitter | Watch our YouTube Videos
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