Other than Massachusetts, any other States requiring ALL to have Health Insurance?

[FinanceGeek]

I'm still not clear on the no-rejection-allowed laws.

Let's say in New Jersey, a healthy 50-year-old retired person calls the insurance company and gets policy A and it costs $3,600 per year.

Now another 50-year-old who has been diagnosed with a terminal disease, and is expected to live another 3 years, the last two of those in the ICU, calls the insurance company and says he wants policy A.

What happens at that point?

My understanding of the system is that only age and sex may be used in the underwriting and rate setting process, not health status.

So in your example both 50 year olds would receive the same quote for the same policy.

MA used to operate a scheme like this for auto insurance, perhaps they still do. Your driving record was irrelevant, only your age, sex, and rating territory were used to set rates. Over time many insurance companies stopped doing business in the commonwealth. I suspect that the same thing will happen eventually with health insurance.

 

[Freein05]

In my post above I was wrong. The insurance companies does not even bill me for the premium. I pay them the extra 10% or 100 for one letter sent the first of the year that states how much I must pay each month. I have to pay that amount by the first of each month without a bill. I am allowed to be late once before they cancel my insurance in a twelve month time period. Which they would like me to be so they can dump the old man.

 

[Martha]

I'm still not clear on the no-rejection-allowed laws.

Let's say in New Jersey, a healthy 50-year-old retired person calls the insurance company and gets policy A and it costs $3,600 per year.

Now another 50-year-old who has been diagnosed with a terminal disease, and is expected to live another 3 years, the last two of those in the ICU, calls the insurance company and says he wants policy A.

What happens at that point?

Most states have pre-existing condition waiting periods of six months to a year, unless you had prior health insurance that may be credited against that waiting period. If there weren't such waiting periods, why would anyone bother with insurance? You need to have exclusions or require everyone to have insurance.