Insurance companies can drop you because you make a claim?

Even if we change the laws to prevent them from dropping people, I've heard horror stories of insurance companies targeting expensive customers for a severe audit, looking for the slightest mistake on any sort of form they can use as legal standing to completely nullify coverage.

LobsterMobster wrote:

Even if we change the laws to prevent them from dropping people, I've heard horror stories of insurance companies targeting expensive customers for a severe audit, looking for the slightest mistake on any sort of form they can use as legal standing to completely nullify coverage.

If you constrain their ability to manage their customer demographics as they see fit, you'll likely see increased premiums across the board to offset the additional perceived "risk".

Jonman wrote:
LobsterMobster wrote:

Even if we change the laws to prevent them from dropping people, I've heard horror stories of insurance companies targeting expensive customers for a severe audit, looking for the slightest mistake on any sort of form they can use as legal standing to completely nullify coverage.

If you constrain their ability to manage their customer demographics as they see fit, you'll likely see increased premiums across the board to offset the additional perceived "risk".

An equivalent to some of the ACA functions in regulation for other types of insurance would be a great thing. Insurance companies run as for-profit, publicly-traded companies have always struck me as really bad idea because it introduces a serious conflict of interest.

ACA Fact Sheet[/url]]Beginning in January, the Affordable Care Act requires individual and small group insurers to spend at least 80% and large group insurers to spend at least 85% of your premium dollars on direct medical care and efforts to improve the quality of care you receive – and rebate you the difference if they fall short.

Stop insurance companies from limiting the care you need. For most plans starting on or after September 23, these rules stop insurance companies from imposing pre-existing condition exclusions on your children; prohibit insurers from rescinding or taking away your coverage based on an unintentional mistake on an application; ban insurers from setting lifetime limits on your coverage; and restrict their use of annual limits on coverage.