Washington State s Private Health Insurance

Transcription

1 Washington State s Private Health Insurane I am Dleased the President Clinton s reform proposa I s so losely resemble Washington State s new law. Governor Mike Lowry Sep tern her 23, 1993

2 , In 1993, Washington Had an Ative, Vibrant Private Health Insurane Market. But Then, Caught Up in Reform Fever, the Washington legislature Passed Sweeping laws Designed to Make It Easier for Individuals and Families to Purhase Private Health Insurane. Among the law s many provisions: l l one an be delined for overage due to a health ondition, no matter how serious. Preexisting onditions may only be exluded for three months for people with no prior insurane but must be overed immediately for persons with prior overage. l Rates must onform to a modified ommunity rating sheme. The results? Disastrous. Rates are soaring, virtually every insurer has abandoned Washington s private health insurane market, and hoies are vanishing. In 15 of Washington s 39 ounties, not a single private health insurane plan is available for purhase. t one! b This did not have to happen. But it s tragi to let it ontinue. Stop the meltdown. premiums to Wuhington Restore hoies and affordable state s private health insurane market.

3 L Rates for Private Health Insurane Are Soaring. Mr. Mason now pays $267, up from the $115 he paid when he signed up under open enrollment two years ago. He adds that they ve already told me the rates are going to $305 a month and that the rising bills are draining his retirement savings. Wall Street/ournal Friday, April 5, 1996 As for the Basi Health Plan, it now has about 17,000 unsubsidized members (the state subsidizes low-inome families). But rates next year will jump an average 62 perent. &get Sound Business/ournal Monday, vember 9,1998 Then, last vember, Martin got stiker shok. She and her husband had been paying $496 a month for the unsubsidized Basi Health Plan. In January, they learned, the ost would double. Seattle Times Sunday, April 25, 1999 Regene BlueShield has announed its intention to raise rates 28 perent -- resulting in a $600 per-month premium for some subsribers. National/ournalj Daily Briefing Friday, June 18, 1999 Besanon and her husband are being asked to pay $ per month for an individual poliy to over them and their three hildren. Her husband installs ar stereos; she is going bak to shool. Seattle Zms Wednesday, June 16, Page 3

4 Insurers Are Abandoning Washington. More than 30 insurers have notified the state they no longer wish to do business here. Wall Street/ournal Friday, April 5, 1996 In 1393, when the Legislature adopted radial health-insurane hanges, 18 insurers were ative in Washington s individual market. Three years later, there were only six with any signifiant market share. And now there s only three, whih together ommand 80 perent of the market. Puget Sound Buriness]ournal Monday, vember 3, 1998 Washington State s individual insurane market is ontinuing to fall apart.... Premera Blue Cross ommanded 60 perent of the loal market when it bowed out last year based on its inability to make a profit beause of its high-ost patients. Regene Blue Shield and one ompetitor, Group Health Cooperative, were left to pik up the slak. National]ournali Daily Briefing Friday, June 18, 1999 In 1993, before the reforms 19 insurers sold individual poliies in the state. w, only two do so. The Seattle Times Monday, April 25, 1999 Regene BlueShield, the state s largest plan overall, is onsidering a moratorium new individual poliies. Puget Sound BusinessJournal May 31,199P on

5 Choies Are Disappearing for Washington s Consumers. Between 1990 and 1994, 16 states [one of whih is Washington] were most aggressive in passing laws designed to inrease aess to health insurane for their uninsured itizens. The results: In 1996, all 16 states experiened an average growth in their uninsured populations eight times that of the other 34. Uninsured Rates Rise Dramatially in States with Stritest Health Regulations The Galen Institute &The Health Poliy Consensus Group August 1998 Last summer, the Business journal reported that some 14,000 people had dropped their individual overage during the first half of 1997, following an even steeper deline in 1996, when the state s largest insurers suffered a olletive disenrollment of nearly 40,000 individual poliyholders. &get Sound Businessjournal Monday, vember 9, 1998 In 15 of the state s 39 ounties, there are no insurers selling individual poliies.... It s very, very frustrating, says Virginia Gayken, an insurane agent in Ellensburg. We get four to five alls a day from people asking for individual medial overage. It s too bad we have to tell them, Sorry, we don t have anything for you. The Seattle Times Sunday, April 25, 1999 In short, there is a high risk that enrollment in individual health plans may be losed throughout the state in a matter of a few months. The Seattle Times May 12, 1999 The withdrawal of the arriers, who said they were losing too muh money on individual poliies in those markets, left the ounties without a soure of omprehensive individual overage in the private market, said [Insurane Commissioner spokesperson] Stetson. She also stated that Washington s Basi Health Plan is available but it is very ostly and does not offer all the benefits that seriously ill people need. Full Coverage of State Health Reform Legislation Counil for Affordable Health Insurane May 28, 1999.

6 Before Deborah Senn Beame Washington s Insurane Commissioner, the State Had a Working, Funtional Private Health Insurane Market. Her 1993 Initiative Has w Almost Completely Wreked the Market. Our fine. market is having its ups and downs; but, on balane, it s going to ome out just Insurane Commissioner Deborah Senn State Health Wath Marh, 1997 The real problems in the marketplae have been reated by the behavior of the arriers, not onsumers -- who are simply doing their best with the hand dealt them by the arriers. Insurane Commissioner Deborah Senn The Seattle Post - Intelligener February 4, 1999 (State Insurane Commissioner Deborah Senn said yesterday she will ask the state s health insurers to reopen a l&year-old high-risk pool to over Eastern Washington itizens who an t get health insurane at any prie.... Customers in the high-risk pool must pay muh higher premiums and osts for servies, she said, hut There are few options right now for new individual appliants in those 15 ounties. Seattle Times May 14, 1999 It s my job as insumne ommissioner to protet the publi. Puget Sound Buriness/ournal May 31, 1999

7 b Washington s legislature Must Fix the Health Insurane Meltdown Before It s Too Late. l Repeal guarantee issue. Enat a working High Risk Pool, restore underwriting, and wath pries fall. l Repeal ommunity rating. Permit arriers to harge realisti rates and pries for everyone will ome down. l Repeal some of the most liberal mandates in the ountry. People in Washington an easily buy insurane when they get sik and drop it when they re well again. It doesn t make sense to sell insurane when the house is already on fire. Restore the Washington health insurane market W! L For More Information, Evergreen Freedom Foundation I?O. Box 552 Olympia, WA vi+ (360) Fax (360) eff%a@effna.org Our Mission: Contat: The mission of the Evergreen Freedom Foundation is to advane individual liberty, free enterprise, and responsible government. Our efforts enter around providing publi poliy researh and alternatives in the following foundational areas: state budget and tax poliies, welfare, health are and eduation reform, and itizenship and governane issues. The Evergreen Freedom Foundation neither soliits nor aepts funds from publi soures. All programs and ativities are funded by private donations and grants. Our support omes from thousands of onerned individuals and numerous private foundations. Page 7

8 d Addendum Availability of Individual He&b Coverage in Washington State b under a health plan s name in a given ounty meam the plan sells at least one ommerial individual he&h insurane poliy that residents of that ounty an purhase as of July 15, COUllty Adams Asottn Benton Chelan Clallam Clark Columbia Cowlitz Douglas Ferry Franklin Garfield Grant Grays Harbor Island gyj Kitsap Kittitas Klikitat Lewis Linoln Mason Okanogan Paifi Pand Oreitle Piere San Juan Skagit Skamanla Snohomish Spokane St&W!3 Thurston Wahkiakum Walla Walla Whatorn Whitman Yakima Aetna Group Health (partial) KPS Health Plan Premera Blue Cross _ Regene Blue Shield Yl?S Y@S Ye5 rthwest Medial Bureau Page 8

9 b II Li Addendum. Consumers wanting to purhase ommerial individual overage have M options available in 20 wa.shiigton state ounties. plans available: Adams Asotin BenKIll Chelan Columbia DOU& Ferry FEUlkliIl Ga&ld Grant Island Kirtitas Linoln OhtlgOtl Pend Oreille San Juan Sp0kW StCWX W&&&urn Whitman l Consumen in nine ounties have only one health plan option for ommerial individual overage. One pkm nvdzzbl Cl&m Clark Cowlirz IChap Klikitat Paifi Skamania Walla Walla Yakima l Consumers in only ten ounties have more than one option for ommerial individual overage. Mom than one option: Grays Harbor Jefferson King Lewis M%OIl Piere Skagir Snohomish Thurston Vbatom sowe: Assona,,~ 01 WBshingtm Heallhmre Plans Page 9