I often sound like a broken record on these issues, but insurance regulation is a mix of federal and state law. Federal law doesn't regulate pricing at all. Federal law does require insurance policies be guaranteed renewable, even policies sold on the individual market. There are exceptions. Temporary insurance isn't guaranteed renewable. Insurance obtained through fraud can be canceled (you lied about your health history for example). If you leave the service area, the insurance company can drop you. The insurance company can also drop the particular plan, which it may very well do if it determines that the people in the plan are costing them too much money. They can then invite everyone to reapply for a new plan and decline coverage to the less healthy. Or they can raise rates for everyone in the plan and the healthier will abandon the plan for a cheaper plan.
MyKids speaks too broadly about the ability of insurance companies to raise your rates due to your health status. This is a matter of state law. A number of states do not prohibit insurers in the individual market from increasing rates based on claims or age of covered individuals. Some states require community rating of health insurance premiums. No policyholder can be charged more than any other based on health status, health history, or other risk factors. (NJ for example) Other states require modified community rating with adjustments permitted for age, but not health status. Yet other states impose rating bands that limit how much premiums can vary based on health status, age, and other factors.
This is a good summary of state restrictions: http://www.healthinsuranceinfo.net/newsyoucanuse/discrimination_limits.pdf
MyKids speaks too broadly about the ability of insurance companies to raise your rates due to your health status. This is a matter of state law. A number of states do not prohibit insurers in the individual market from increasing rates based on claims or age of covered individuals. Some states require community rating of health insurance premiums. No policyholder can be charged more than any other based on health status, health history, or other risk factors. (NJ for example) Other states require modified community rating with adjustments permitted for age, but not health status. Yet other states impose rating bands that limit how much premiums can vary based on health status, age, and other factors.
This is a good summary of state restrictions: http://www.healthinsuranceinfo.net/newsyoucanuse/discrimination_limits.pdf