Health Insurance? Help Us Afford It

The Associated Press has reported that the health insurance industry is offering "for the first time to curb its controversial practice of charging higher premiums to people with a history of medical problems."

If you've ever had a medical problem, then lost a job or started a small business and tried to buy individual health coverage, you likely have run into this little problem:

If you need it, you really can't afford it.

Republicans have long pushed for "market solutions" to the health insurance problem. And the "solutions" the market keeps delivering tend to be priced somewhere beyond sky-high.

According to the AP article posted by CBS News, "[a]bout 7 percent of Americans buy their coverage as individuals, while more than 60 percent have job-based insurance."

The percentage for individuals likely would be much higher if monthly premiums for health insurance did not rival or exceed mortgage payments and car payments. Meanwhile, people with employer-provided health insurance are paying sharply higher premiums and co-payments and getting squeezed hard, too.

"The offer here is to transition away from risk rating, which is one of the things that makes life hell for real people," health economist Len Nichols of the New America Foundation public policy center told the AP. "They have never in their history offered to give up risk rating."

According to the AP report on the CBS News site, insurers hope to head off the creation of a government insurance plan that would compete with them, something that liberals and many Democrats are pressing for.

The AP report did not mention that Republicans long have opposed government-sponsored health insurance plans, touting vague "market solutions," instead. These are the same "market solutions" that have helped keep many of the 47 million or so uninsured Americans priced out of the health-insurance market and in the "if you need it, you can't afford it" category.

The current offers from the insurance industry fall short in one very big category: small business, which creates the vast majority of new jobs in the American economy. Small businesses, under the new proposal, would have to keep paying higher premiums and deal with risk ratings. One sick employee could send premiums through the roof.

So the news on risk ratings seems to be significant, but now is not the time for the Obama Administration to ease off on its health-insurance plans. If anything, the White House needs to ratchet up its proposals and keep holding the health-insurance industry's feet to the fire.

-- Si Dunn