Health Care Law Impacting Insurance for Children

By Ed Murray, NEWS 9

OKLAHOMA CITY -- Health insurance companies, including several in Oklahoma, are no longer offering "child only" policies. It's a reaction to aspects of the new health care law that takes effect this fall.

It's being called an unintended consequence of the federal overhaul. One of the law's most popular components is that insurers cannot deny coverage of sick children even with pre-existing conditions. But insurance companies are concerned parents will simply wait for a major illness, buy a policy to pay the bills then quickly drop it.

"If you can buy coverage...even for a child to take care of an instance or serious medical condition then drop it later, then everyone's rates go up," said State Insurance Commissioner Kim Holland.

Holland said this is a tough call for the state's insurers who are headquartered in Oklahoma, but have to be concerned for all policy holders moving forward.

"We can't be competitive. We can't offer a product that can be priced properly. We're worried we could end up going out of business and harming all of our policy holders," Holland said.

The major types of coverage like group plans and existing policies are not affected just new requests.

Still, the White House is not happy. A Health and Human Services spokesman said "We're disappointed that a small number of insurance companies are taking this unwarranted and unnecessary step."

Holland would like to see the government adopt an open enrollment period.

"Something similar to that insures that children get coverage, no pre-existing conditions but it eliminates the risk of people using insurance, getting on it to cover a particular incident and then getting off of it again causing everybody else's rates to go up," said the state insurance commissioner.

Holland said she absolutely believes we must insure all our kids, but we need to do it in a smart way. And she's pleased that Oklahoma's insurance industry is closely working with her office and is encouraged so far by the positive response she's getting from Washington D.C.

Holland said she could hear something from Health and Human Services about her plan by the end of this week. The final regulations controlling children's coverage are due no later than September 23.