Health Care Reform

Once President Obama signs the new Health Care Reform bill today, new rules governing health insurance will become law. As an insurance agent who sells health insurance, it will be interesting to me to see how the insurance companies will react to some of the mandated changes that will go into effect. Some go into effect right away, while others do not happen until 2014. Children with pre-existing health conditions are to be covered right away (or at least within 30 days). This would seem to me to have an effect on premiums. While it will be good for the children who do not have health insurance now, will their parents be able to afford the premiums? Erasing the lifetime maximums on health insurance benefits will also drive premiums higher in the long run. The only thing that would seem to help spread the risk is the fact that now (beginning in 2014) everyone will be required to have health insurance. This means that healthy people who choose not to carry health insurance (either because they feel they don't need it or because they can't afford it) will have to sign up for coverage or pay a penalty. Sure some families will get government subsidies to help pay for the cost of their health insurance, but with so many people without jobs or with low paying jobs, will they still be able to afford it? I think some will choose to pay the penalty instead. As President Obama said yesterday, "this is what change looks like".