We Need A Public Health Insurance Plan to Keep Us S.A.F.E. (By Monica Sanchez)

http://www.ourfuture.org/blog-entry/2009104106/we-need-...

We Need A Public Health Insurance Plan to Keep Us S.A.F.E.

By Monica Sanchez

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The Washington Post recently gave us a look at how insurance companies will likely continue to discriminate against people with pre-existing conditions even if laws are passed laws to prevent such practices. The article, “Discrimination by Insurers Likely Even With Reform, Experts Say”, predicts “new biases against prior conditions” will rise up in response to a new regulatory framework:

“Any health-care overhaul that Congress and President Obama enact is likely to have as its centerpiece a fundamental reform: Insurers would not be allowed to reject individuals or charge them higher premiums based on their medical history.

“But simply banning medical discrimination would not necessarily remove it from the equation, economists and health-care analysts say.

“If insurers are prohibited from openly rejecting people with preexisting conditions, they could try to cherry-pick through more subtle means. For example, offering free health club memberships tends to attract people who can use the equipment, says Paul Precht, director of policy at the Medicare Rights Center.

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“By itself, a ban on discrimination would not eliminate the economic pressure to discriminate.

“‘It would probably increase the incentive for cherry-picking,’ Pauly said. ‘I'm strongly motivated to try to avoid you if I'm not allowed to charge you extra.’

The article goes on to name some ways to stop the discrimination, but we know from experience with Medicare, that none of them can completely stop insurance companies from trying to avoid insuring people who actually need insurance. As Karen Pollitz made it clear to The Washington Post:

"In a competitive market, a good-guy insurer is a patsy. The race is to the bottom."

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That is one of the many reasons we need a public health insurance plan. It may not keep the insurance companies from continuing to do everything in their power to avoid people who need care, but it will give us all a safe harbor from insurance company abuses.

Call your Senators and tell them you demand a public health insurance option to keep you S.A.F.E. (PDF): giving us stability, accountability, financial security and efficiency.

UPDATE: MSNBC's Dr. Nancy explored the problem of cherry-picking: (see video at the end of this link