BACK


The individual health insurance market reform bills are now being reviewed by a bipartisan committee made up of members of the House of Representatives and the Senate. We encourage the committee to ensure the final bills contain all of these much-needed consumer protections that will help make health care coverage for individuals more affordable and accessible. Michigan needs insurance reform that will:
  • Cap rates and rate increases.
  • Create a uniform, objective method for setting rates.
  • Lower the waiting period for pre-existing conditions to six months.
  • Allow initial health condition to be used only when a person applies for coverage for the first time, and prohibit insurers from raising rates at renewal because of a change in a person’s medical condition.
  • Authorize the Insurance Commissioner to order refunds for excessive rates.
  • Require that Blue Cross Blue Shield of Michigan maintain its insurer of last resort status.
  • Establish a risk-spreading mechanism for high-risk individuals, ensuring all carriers bear some responsibility for the individuals they choose to reject.

Michigan deserves more consumer protection
Here is a brief overview to help you understand what these reforms mean to the Michigan individual health insurance market and its consumers.


Capping rates, limiting rate increases

Michigan needs protection against high rates. Under the current rules, for-profit insurers have virtually no limit on how much they charge when people apply for coverage. They can charge whatever they want. Reform legislation will create fair, consistent pricing by putting a cap on the amount an insurer can charge when people apply for coverage.


The reform bills need to help people with high-risk conditions

For-profit insurers can deny health care coverage for any reason, and typically they turn away 20 percent to 30 percent of those who apply. In 35 other states, insurance companies all contribute to a high-risk pool to help keep coverage affordable, but in Michigan, health insurers get a free ride. They simply deny coverage and walk away from the people who need insurance the most.

We need to establish a risk-spreading mechanism for high-risk individuals, ensuring all carriers bear some responsibility for the individuals they choose to reject.


Contact your legislators and let them know more work is needed on the individual market reform bills!

 

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