It is a comparatively unnoticed and largely unremarked part of the pending Senate Health Care Bill. It reflects a theory of Regulation, which exists also in comparable provisions in the House Bill with which the Senate Bill has to be reconciled in a joint conference committee before either version becomes U.S. law. Simply put, the Federal Government is bidding to take over Regulation of Health Insurance Companies in key areas.
If successful, as certainly appears to be the likely outcome, the Federal Government will displace and replace State Regulation of Health Insurance Companies in four key areas:
1. Preexisting Condition Exclusions;
2. Charging Premiums based on gender or health of an applicant;
3. Rescission when the Policyholder is sick or disabled and makes a Claim to Coverage; and
4. Issuing a Summary of Benefits.
In posts to come throughout this short week before the New Year of 2010 begins, it is my intent to address each of these areas of replaced Regulation in the pending Senate Health Care Bill. In the interim, see generally this excellent report by Robert Pear, "Senate Approves Health Care Bill in Party-Line Vote" p. A1, col. 4 (New York Times Nat'l ed., Friday, December 25, Christmas Day, 2009).
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