Hot Air posted an article today about another unintended consequence of the recent Healthcare Reform Act.  The bill that Congress passed was supposed to provide all children insurance under their parent’s policies until age 26.  Sounds like a great idea, but there were a few things Congress forgot to consider.

Insurance companies are in business to make money.  They use actuarial charts to set rates and write insurance policies.  In the free market that works.  In a market with excessive government regulation, it doesn’t.  One of the effects of Obamacare that is becoming obvious is that fewer children will have healthcare coverage than before. 

According to the article:

“Starting on September 23rd, insurers will have to allow children onto plans at any time regardless of previous insurance or pre-existing conditions.  The way the law is written, after that date parents can wait until their children get sick to sign them up for individual plans at any time.  Insurers can’t predict the cost of sudden additions to plans for those making immediate use of the system, and so instead just won’t make those kinds of plans available.”

This is very similar to the problems Massachusetts is having with its healthcare plan, which supposedly was one model for Obamacare.  Because insurance companies cannot refuse anyone insurance at any time, people were waiting until they needed major medical procedures to sign up for insurance and dropping the coverage when the procedure was done.  This thoroughly skewed the previous actuarial tables and the insurance companies asked the state for permission to raise their rates.  When the state turned down a majority of their requests, the insurance companies discontinued many of the policies they had been writing. 

It is becoming very obvious that Obamacare fully implemented will be a total nightmare.  The answer is very simple–REPEAL AND REPLACE.  Remember that in November.