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More unintended consequences: insurance companies cease writing new health care policies for children

The AP today reports:

"WASHINGTON (AP) -- Some major health insurance companies will no longer issue certain types of policies for children, an unintended consequence of President Barack Obama's health care overhaul law, state officials said Friday.

Florida Insurance Commissioner Kevin McCarty said several big insurers in his state will stop issuing new policies that cover children individually. Oklahoma Insurance Commissioner Kim Holland said a couple of local insurers in her state are doing likewise.

In Florida, Blue Cross and Blue Shield, Aetna, and Golden Rule -- a subsidiary of UnitedHealthcare -- notified the insurance commissioner that they will stop issuing individual policies for children, said Jack McDermott, a spokesman for McCarty.

The major types of coverage for children -- employer plans and government programs -- are not be affected by the disruption. But a subset of policies -- those that cover children as individuals -- may run into problems. Even so, insurers are not canceling children's coverage already issued, but refusing to write new policies..."

Many are of the view that this phenomena is not an unintended consequence, that it is by design of policy. It is a logical and predictable response to cost structures and burdens imposed by the new 'health care reform'.  We predict more insurers will follow and that health care providers across different sectors in increasing numbers will start to limit treatment or otherwise refuse to accept reimbursement schedules that cause them to incur losses.

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