From the Annals of Insurance Malfeasance:
Imagine having a perfectly healthy two month old baby and having your insurance company tell you they won't cover him. One [Grand Junction, Colo.] family says that's what's happened to them.
Baby Alex is a happy, adorable, big baby. And now at three months old, the family's insurance company says he's not eligible for coverage.
Alex eats well, is growing fast and has no pre-existing conditions. But his mom Kelli says their insurance company says he's just too big. "Insurance standards say if he's above 95 percent he's uninsurable."
Because of his size, Alex was turned down for health insurance, his height and weight put him in the 99th percentile according to CDC guidelines.
Thankfully, in the face of bad publicity, the insurance company has backed down, but this raises a troubling question: If this is what insurance companies are doing when they're trying to persuade us that we don't need an overhaul of the system, what do you suppose they'll start doing if they win? What will they start doing if the individual mandate requires everyone to buy insurance, but there's no public option to compete with the private market?
This story illustrates well the absurdity of the system as we have it now: It is actually possible for a supposedly fully insured family to be denied coverage for their healthy baby because it is deemed overweight! How can it be legal for a company to do this? Well, who writes the laws?
It continues to amaze me, in the face of stories like this, that it's even necessary to have a debate about whether we should change the current health care system. Hell, it amazes me that consumers aren't showing up at health insurance companies with torches and pitchforks.
Mark my words, if health reform passes with an individual mandate and no public option, this will get worse. Ideally, we ought to required insurance companies to provide a minimum standard of care on a not-for-profit basis, and require them to cover all claims. The system we have now is rife with moral hazard, and it will only get worse from here.