Health insurers pull a fast one in proposed reform

The industry says it will treat all people fairly in return for a government requirement that everyone has to buy their product. But they want to charge different prices for different levels of coverage

David Lazarus
LA Times
March 29, 2009

It might have looked as if real progress toward healthcare reform was made last week when leading insurers proposed ending their long-standing practice of charging higher rates to sick people and denying coverage to those with chronic conditions.

But not so fast.

A closer look at the insurance industry's plan reveals a potentially huge loophole that could short-circuit genuine reform.

The insurers are saying that they'll treat all people fairly in return for a government requirement that everyone buy their product.

Yet if you read the fine print in their plan, it turns out that they're reserving the right to charge different prices for different levels of coverage -- a practice that would effectively keep us where we are, with sick (or potentially sick) people paying more for insurance. Click on loophole for the rest of the story.