Myth #3 in the Series--Dispelling the Six Most Prevalent Myths Regarding Health Care Reform, 1 Myth at a Time

I'm bringing my blog around to business with this third myth. I do plan to concentrate on health care reform and business later on in my posts.

In addressing myths and health care reform in general, I am concentrating on H.R. 3200 as this is the most talked about bill. There are other health care bills floating about.

Myth #3
Private health insurance would be made illegal, banned by the proposed health care reform.

Facts

This myth has been traced to an editorial that appeared in Investor's Business Daily, and picked up by a number of media outlets. In the editorial, it was claimed that H.R. 3200, page 16, banned private health insurance. This is not what section 102 on page 16 states. Here is that text: SEC. 102. PROTECTING THE CHOICE TO KEEP CURRENTCOVERAGE.
(a) GRANDFATHERED HEALTH INSURANCE COVERAGE DEFINED.—Subject to the succeeding provisions of this section, for purposes of establishing acceptable coverage under this division, the term ‘‘grandfathered health insurance coverage’’ means individual health insurance
coverage that is offered and in force and effect before the first day of Y1 if the following conditions are met:
(1) LIMITATION ON NEW ENROLLMENT.—
(A) IN GENERAL.—Except as provided in this paragraph, the individual health insuranceissuer offering such coverage does not enroll any individual in such coverage if the first effective date of coverage is on or after the first day of Y1.

Check out the text in the bill here http://peters.house.gov/uploads/HR3200%20Full%20Text.pdf

So, what does this mean? It means that private insurance companies would still offer health insurance, but they would do so through the exchange that we have been hearing about. So, what does this mean? This means that private insurance companies will be able to offer private policies, but they will not be able to exclude people with pre-existing conditions. The Health Insurance Exchange allows for people to comparison shop between the private companies and the public option. Those people who have coverage prior to the implementation, Y1, would be able to keep the plan they have. It would not be yanked out from under them. The bill actually would prohibit some people from going into the public option.

The bottom line is that health care reform would not put private insurers out of business, which is what some people are worried about. I'm worried about the skyrocketing costs associated with not having health care, and I'm worried about the people who cannot afford the exorbitant costs some private insurers charge. Study after study shows that people without health insurance cost the rest us a lot of money.

Think about it--if someone cannot afford health insurance, do they go to a doctor for preventive care? Statistics say, "No." They cannot afford it. So what do they do? They wait until there is an emergency and then go to the emergency room. What happens to too many people that forgo preventive care is that chronic conditions only tend to get worse, and that's when they end up in the E.R. I'm not blaming the people who cannot afford insurance. I think our system, or lack thereof, is to blame.

Sources on this issue that can be checked out are: www.urban.org/publications/901286.html, www.huffingtonpost.com/wires/2009/08/13/debunking-health-care-lie_ws_258883.html, http://www.aarp.org/.

Also, check out Erin Kennedy's blog, http://theupsanddownsofbeingyourownboss.blogspot.com/2009/10/health-insurance-nightmare.html#comments. This post deals with Erin's quest to get health insurance on her own when she was self-employed.