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Tipsheet

Taking Away the Private Option

Yesterday, I came across a great piece in Investor's Business Daily about how the House Democrats' Health Care Reform bill released earlier this week would mark the end of individual private medical insurance if signed into law.
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I've posted a part of it for you below, and I encourage you to read the entire piece. The bill as it's written would kill the market for private individual coverage by not letting any new policies be written after the government option becomes law.

As I've mentioned in previous posts, Republicans want to expand access to affordable health care and give families the freedom to choose the health care that fits their needs – without imposing a job-killing tax hike on small businesses and working families. From what we’ve seen from the Democrats – they want to take those choices away.

It's Not An Option

By INVESTOR'S BUSINESS DAILY | Posted Wednesday, July 15, 2009 4:20 PM PT

Congress: It didn't take long to run into an "uh-oh" moment when reading the House's "health care for all Americans" bill. Right there on Page 16 is a provision making individual private medical insurance illegal.

When we first saw the paragraph Tuesday, just after the 1,018-page document was released, we thought we surely must be misreading it. So we sought help from the House Ways and Means Committee.
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It turns out we were right: The provision would indeed outlaw individual private coverage. Under the Orwellian header of "Protecting The Choice To Keep Current Coverage," the "Limitation On New Enrollment" section of the bill clearly states:

"Except as provided in this paragraph, the individual health insurance issuer offering such coverage does not enroll any individual in such coverage if the first effective date of coverage is on or after the first day" of the year the legislation becomes law.

So we can all keep our coverage, just as promised — with, of course, exceptions: Those who currently have private individual coverage won't be able to change it. Nor will those who leave a company to work for themselves be free to buy individual plans from private carriers.

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