Health Insurance Receives 'Failing Grades' in Many States

QuickQuote Term Life Insurance Blog

Families USA, a Washington, D.C.-based health care consumer group, recently released a report claiming laws in most states benefit health insurance companies over health insurance consumers. The report, titled ‘Failing Grades,’ is the result of the group’s survey of insurance commissioners of all fifty states. The group contends the results show the individual health insurance market is a market of abuses and inadequate consumer protection.

According to the report, 35 states have no set limitations on the premium increases insurance companies can impose on consumers based on health status. The group also claims most states allow insurance companies to hand-pick healthy customers.

Some other findings include:

  • 21 states allow insurance companies to exclude coverage for a pre-existing condition for more than one year.
  • 44 states allow insurance companies to revoke coverage without state review or approval.

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