Stranded on Health Insurance Island

Health insurance coverage is portable, right? Most people think their plan follows them no matter where they go.

For the most part, that is true, but there are exceptions.

Especially if you live in New York.

Twenty years ago the NY legislature decided it was time to teach the health insurance companies a lesson. Tired of hearing complaints about those who could not obtain health insurance due to pre-existing medical conditions, they decided to reform health insurance.

The results were disastrous.

The bloggers at InsureBlog volunteer their time and expertise on consumer forums. Recently we encountered an individual that resides in NY but will take contract jobs in other states for extended periods of time. When his health insurance company learns that he is living in another state they cancel his insurance.

That's right. They cancel his insurance.

Why?

Because the state has created a health insurance island where only a few carriers are allowed, or willing, to operate. The regulatory environment is stifling which leads to LESS competition and HIGHER premiums.

This 20 year experiment SHOULD be a lesson for those trying to duplicate the idea of health insurance for everyone.

Unfortunately the folks in Washington are not paying attention.

Perhaps we should vote them off the island and extinguish their torch.