Ahead of requirement to cover kids with medical problems, some insurers drop out

By AP
Friday, July 23, 2010

Some insurers stop writing new coverage for kids

WASHINGTON — Some major health insurance companies have stopped issuing certain types of policies for children, an unintended consequence of President Barack Obama’s health care overhaul law.

Florida Insurance Commissioner Kevin McCarty said in his state UnitedHealthcare and Blue Cross Blue Shield have stopped issuing new policies that cover children individually — not as dependents of their parents. Oklahoma Insurance Commissioner Kim Holland said a couple of insurers in her state have done likewise.

The move could affect several hundred thousand children.

Starting later this year, the law requires insurers to accept children regardless of medical problems. The companies are worried that parents will wait until kids get sick to sign them up.

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