The Los Angeles Times and other media outlets are reporting that parents with sick children will have fewer health insurance choices under ObamaCare. President Obama’s administration promotes this policy as “A New Day for American Consumers.”
ObamaCare’s mandate that healthy children can wait until they are sick to buy insurance has caused some health insurance companies to discontinue selling “children only” health insurance plans. When only sick people buy health insurance, rates increase, and as rates increase, more people drop their coverage. This is called “adverse selection,” and it reduces choices and increases rates for all.
Most children are covered under their parents’ plan, but some uninsured parents choose to buy a children-only plan to cover their children. According to news reports, these families will have fewer health insurance choices under ObamaCare.
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