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Chairman Dave Camp

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More Americans Lose Their Insurance Plan As Result of Democrats’ Health Care Law

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Washington, Oct 31, 2011 | comments

One of the key, and often repeated, selling points of the Democrats’ health law is that if you like the plan you have, then you can keep it.  If only that was true…

American Enterprise Group
recently announced that it would no longer offer non-group health insurance in more than 20 states.  As a result, 35,000 individuals and families will no longer be able to keep the plan they have.  The company cited regulatory burdens, in particular the imposition of medical loss ratios (MLR), in Democrats’ health overhaul as the reason for exiting the market.

This is not an isolated incident but rather part of a growing trend across the country that is likely to accelerate.  For example:

  • Seventeen states and Guam have applied to the Department of Health and Human Services to be granted waivers from the new MLR requirements because complying with the law would disrupt health insurance coverage for the millions of Americans who buy coverage on their own.
  • Principal Financial Group announced last year that it would stop selling health insurance, impacting 840,000 people who receive their insurance through employers.
  • Cigna is no longer offering health insurance coverage to small businesses in the following states: California, Connecticut, Florida, Georgia, Hawaii, Illinois, Kansas, Missouri, New Hampshire, New York, North Carolina, Ohio, Pennsylvania, South Carolina, Texas, Virginia, and Washington, DC.
  • Virginia-based nHealth announced it was shutting down its operations in response to the Democrats’ health law.
  • In New Mexico, four insurers - National Health Insurance, Aetna, John Alden, and Principle - are no longer offering insurance to individuals who buy insurance on their own or through a small business.
  • Since June, 2010, 13 plans have pulled out of Iowa’s health insurance market citing regulatory concerns.
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