Insurance options – the bait and switch

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Association of American Physicians and Surgeons, Inc.
A Voice for Private Physicians Since 1943
Omnia pro aegroto

House bill would destroy private insurance””and private medicine

July 20th, 2009

Provisions of the plan:

Obama promised that you could keep your health plan””but the “tri-committee” House bill, “America’s Affordable Health Choices Act of 2009” (H.R. 3200), assures that this will not be possible. Unless your plan, unlike any other business, can survive without a single new customer.

“Grandfathered health insurance coverage” is not permitted to enroll any individual if the effective date of coverage is on or after the first day of Y1 (§ 102). It is also not allowed to make any changes in terms or conditions.

Plans that are not grandfathered are basically prohibited from following the principles of insurance; that is, they cannot price coverage according to risk, but must force low-risk individuals to subsidize those of higher risk. Such plans are truly not insurance, but rather a type of welfare benefit. The means of financing is not correctly called a “premium.” A mandatory payment is properly called a “tax.” For lower-income individuals, the effective tax will be reduced by an income-based subsidy.

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