A New York and New Jersey Lawyer Who Represents Policyholders and Beneficiaries in Life Insurance Denial Cases

There is an interesting article in the New York Times that discusses how New York state, with its prohibition against denying coverage based on pre-existing conditions, may serve as an example for the recently-enacted federal health care reform legislation.

The gist of the story is this: without controls on insurance company price-setting and profits, they can enact massive rate hikes which then makes insurance unaffordable and not worth the investment for young, healthy people. As a result, the only insured are those who are older or are in poor health. And rates go through the roof since there are not healthy insureds to water down the risk.

The analysis pertains to individual coverage, which as everyone knows, sets rates that are through the roof. For larger plans the risk is more spread out and so the rates are more reasonable.

That is why for one woman in the article who lives in New York and has cancer was able to get health insurance, but pays a whopping $17,876 per year.

Unfortunately, these type of economic fluctuations result when something vitally necessary to us all, health coverage, is driven by profits and risk assessment.

Leave a Reply