Colorado regulations deny woman coverage
June 3rd, 2008 | by Brian T. Schwartz |Mark Kilmer at StateHouseCall.org found this story in the New York Times, which illustrates why we should be free to buy insurance that meets regulations of any state. It’s also an example of unintended consequences of political controls. He summarizes the issue quite well, so I’ll reproduce it here:
The New York Times had an interesting story regarding how some women are unable to buy insurance in the individual market because they received Caesarean sections in the past. Among the usual denunciations of insurance companies was an indication that meddling politicians actually created this problem:
In a letter to Ms. Robertson, Golden Rule, which sells individual policies in 30 states, said it would insure a woman who had had a Caesarean only if it could exclude paying for another one for three years. But in Colorado, such exclusions are considered discriminatory and are forbidden, so Golden Rule simply rejects women who have had the surgery, unless they have been sterilized or meet the company’s age requirements.
If the insurance company had the freedom it has in some states other than Colorado, Ms. Robertson would have the ability to obtain insurance, even if it is at a higher rate than others. Do the policymakers who enacted this ban on "discriminatory" exclusions really think the situation they created is better?
Sure, Colorado politicians probably enacted this insurance rule in order to prevent insurance companies from making women like Ms. Robertson from paying higher prices. But they seem to have failed to realize that another option (and the one that Golden Rule and other companies seem to be taking) is simply not to cover these women at all. Of course, instead of repealing the ban on "discriminatory" exclusions I am sure that as a result of this story there will be calls for guaranteed issue. After all, regulations aren’t to blame for the problems they create, right? The only real problems is that the regulations are’t strict enough.
Too bad Ms. Robertson cannot buy insurance that meets the regulations of other states, which House Bill 08-1327 would have allowed. Perhaps she could get coverage, then.
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