09/10/2007
America's Health Insurance Plans (AHIP) released a new study Sept. 7 examining the impact of state guarantee issue and community rating mandates on the individual health-insurance market. The study found unintended consequences for consumers, including reduced access to coverage.
The AHIP report, prepared by Milliman, Inc., examined guarantee issue and community rating laws enacted in eight states since the 1990s. The states include Kentucky, Maine, Massachusetts, New Hampshire, New Jersey, New York, Vermont and Washington. The study found that states that implemented guarantee issue and community rating experienced an increase in insurance premiums, a reduction of individual insurance enrollment and an exodus of health insurers from the individual insurance market.
The study also found no significant decrease in the number of uninsured -- a motive often cited by proponents seeking rating restrictions. Consequently, the report noted that several states that initially implemented guarantee issue and community rating have since repealed or modified their laws to stabilize the insurance marketplace and provide consumers more choices and better access to coverage.
