Thousands of consumers are gaming Massachusetts’ 2006 health insurance law by buying insurance when they need to cover pricey medical care, such as fertility treatments and knee surgery, and then swiftly dropping coverage, a practice that insurance executives say is driving up costs for other people and small businesses.
Gosh, who could have seen that coming?
The typical monthly premium for these short-term members was $400, but their average claims exceeded $2,200 per month.
That's better than playing the lottery.
the phenomenon is likely to be repeated on a grander scale when the new national health care law begins requiring most people to have insurance in 2014
No kidding.
The problem is, it is less expensive for consumers — especially young and healthy people — to pay the monthly penalty of as much as $93 imposed under the state law for not having insurance, than to buy the coverage year-round. This is also the case under the federal health care overhaul legislation signed by the president, insurers say.
Well yeah, but Obamacare is going to create a budget surplus which will save us from going bankrupt.
In February, (Gov. Duval) Patrick filed legislation that would give his administration sweeping authority to cap rates charged by insurers and medical providers. The bill included a provision that would restrict enrollment for consumers who are buying insurance on their own to two annual periods — in June and December — but includes exceptions for people facing life changes, such as loss of workplace insurance or the birth of a child.
Let's see. Wait until a child is born then buy health insurance. Yeah, that worked so well for the folks in Texas.
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