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Milliman Analyzes Effects Of Coverage Access Initiatives

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America’s Health Insurance Plans has commissioned a review of 8 state efforts to create “guarantee issue” and “community rating” systems.

The review, by analysts at Milliman Inc., Seattle, deals with the health insurance rate and underwriting systems in place in Kentucky, Maine, Massachusetts, New Hampshire, New Jersey, New York, Vermont and Washington, according to AHIP, Washington.

The review shows that the guarantee issue rules, which require insurers to offer coverage to sick applicants as well as to healthy applicants, and the community rating rules, which require insurers to offer the same rates to older, sicker applicants that they offer to other applicants, tend to raise costs and reduce overall access to health coverage, by dramatically increasing the rates that younger, healthier consumers must pay, AHIP says.

A copy of the report is on the Web