Quiz 3: Pre-existing Conditions and Guaranteed Insurance Coverage:
Supporters of Patient Protection and Affordable Care Act (PPACA) said that 700,000 Americans previously denied coverage because of pre-existing conditions would now be able to get coverage under a special program created in the new law. The program was enacted in 2010. (Congressional Budget Office).
Answers to Quiz 3
- a: In two years, only 56,000 people have enrolled in the law’s program aimed at helping people with pre-existing conditions obtain insurance. This program promised enrollment of at least 700,000. (See the CBO estimate versus the actual report.)
- d: As Joint Economic Committee analyst Chris Jacobs has pointed out: “At this rate … the federal government will spend $4,621,647.08 per year for every person with pre-existing conditions newly enrolled in coverage. That’s not just enough money to buy each person with pre-existing conditions a platinum-plated insurance policy — that’s enough to buy each one a small hospital!” (Read Jacobs’ remarks in this Forbes article.)
- d: This provision – called “guaranteed issue” – doesn’t even take effect for adults until 2014.
- d: Guaranteed issue will result in a less healthy pool of insured people. The health law counters this effect by forcing healthy individuals into the market with the individual mandate. Absent the mandate, guaranteed issue would drive up premiums by 15-20 percent. (CBO report)
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