Via Jim comes this depressing story. Only, don't let it depress you (or at least don't get that depression treated), lest you never get health insurance again:
Concerned that ugly family fights were upsetting his young children, a Boston-area lawyer went to a therapist and let his health insurance pick up part of the tab. When the lawyer later decided to apply for more insurance, he was denied coverage specifically because he had the counseling visits on his record.[...]
Individual health insurers may deny you coverage based on your medical history or put you in such a high-risk category that it makes health coverage too expensive, according to Karen Pollitz, a Georgetown University researcher who co-authored a 2001 study on the individual health-insurance market for the Kaiser Family Foundation.
In her study, Pollitz found that roughly 90% of applicants in what's known as less-than-perfect health were unable to buy individual policies at standard rates, while 37% were rejected outright.
"It's very, very hard to get coverage now" in the individual health-care market, said Pollitz, who said underwriting standards have only tightened since her study.
Even counseling for grief or a sleeping or eating disorder can make someone ineligible, she said. So can being on medications for hay fever or acne, because insurers consider you a high user of medications, she said.
"Allegra will get you every time," said Pollitz. "They may deny you, they may increase your deductible, or give you a policy with no drug card."
So keep that hayfever hidden! On some level, this is consumer-directed health care, which is to say, individuals shoulder more risk each time they take a symptom to a doctor. Knowing that your future rates will skyrocket if you receive needed care will definitely make you think twice about seeking treatment for your morning stuffiness. Which is...good?
What's even more galling about these practices is the discrimination in their application. Essentially, only those buying insurance on the individual market will face these risks. Group plans, like those offered by employers, tend to use community rates. As example, I recently signed up for a PPO through The American Prospect and needed to offer absolutely nothing in the way of past medical records. I could have one leg, three arms, and a taste for crack and Blue Cross won't know till I hop into rehab. Meanwhile, if you're audacious enough to be one of those self-employed entrepreneurs Republicans are always lauding, you'd best make sure you never need to fill a prescription.
Update: This is the most succinct explanation I've ever heard of what's wrong with private insurance: "Anything they can do to exclude payment, they do. Their business is to not pay money." Exactly so.
