Administration Takes On Insurance Giant

In New York state, which already requires insurers to sell individual and small group coverage to all comers, without using health status to set rates, the situation would be somewhat different, WellPoint says.

There, the proposed underwriting changes would have little or no effect, and measures such as new fees and subsidies would have a significant effect. Combined, those measures could increase the average cost of coverage 82% for individuals and 6% for small employers, WellPoint says.

With subsidies included, the cost of coverage would fall 40%, to $204 per month, for a family of 4 with income from 200% to 250% of the federal poverty level, and increase 24%, to $421 per month, for a family of 4 with income of 300% to 350% of the federal poverty level.

For a family of 4 with income of 400% of the federal poverty level and no access to subsidies, the monthly cost would increase 82%, to $619 per month, WellPoint says.

The White House says in a “Reality Check” post on its blog that saysWellPoint is wrong..

“Constructive debate on health care is always welcome,” Jesse Lee, a White House blogger, writes. “Unfortunately, what we’ve seen out of the insurance industry over the past few weeks can’t be categorized as either ‘constructive’ or even a ‘debate’ but rather a misinformation campaign designed to confuse and distract attention from those who are seeking real health care solutions.”

The WellPoint state health reform impact analyses use the same kind of selective approach that America’s Health Insurance Plans, Washington, and the Blue Cross and Blue Shield Association, Chicago, have used in their recent impact analyses, Lee writes.

“Among the policies that WellPoint’s study consciously ignores: special policies for young adults including premium credits and a special ‘young invincibles’ plan; reinsurance to lower the cost of catastrophic care; and the benefits of creating a new health exchange,” Lee writes.

By improving and expanding access to health coverage, health reform would “reduce the $1,000 hidden tax tens of millions of Americans pay for the uncompensated care of the uninsured,” Lee adds.