[Congressional Record Volume 146, Number 26 (Thursday, March 9, 2000)]
[Extensions of Remarks]
[Page E269]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




        TAX CREDITS WITHOUT INSURANCE REPORT DON'T WORK: PART 2

                                 ______
                                 

                        HON. FORTNEY PETE STARK

                             of california

                    in the house of representatives

                        Thursday, March 9, 2000

  Mr. STARK. Mr. Speaker, yesterday, I submitted data (page E247) 
showing that refundable tax credits to purchase health insurance don't 
work, unless we accompany the credits with insurance reform.
  Yesterday's data on 120 different price quotes for individual and 
family insurance did not include any follow-up calls to the insurers to 
see what would happen if there were medical underwriting.
  I asked my staff to call 8 insurers in the Los Angeles and Northern 
Virginia markets which had provided quotes through the Internet 
service, Quotesmith.com. My staffer confirmed the Internet quoted price 
and then said, ``Oh by the way, four years ago, I had a bout of skin 
cancer. . . .'' You would have thought my staffer had an active case of 
bubonic plague! the results are listed below.
  Again, Mr. Speaker, this small sample experiment shows that 
refundable tax credits without insurance reform are not worth much. I 
urge Members interested in this approach to consider the types of 
reforms included in H.R. 2185.


                                     PRICE QUOTES AFTER MEDICAL UNDERWRITING
----------------------------------------------------------------------------------------------------------------
                                               Price
                                               before    Price after
         Health insurance company           cancer (per  cancer (per                  Response\1\
                                               month)       month)
----------------------------------------------------------------------------------------------------------------
                                             Los Angeles, California
 
Blue Cross of California..................         $109    $501/$288  A physical is required. Initially, 15-20%
                                                                       increase in rates for pre-existing
                                                                       conditions. when condition specified as
                                                                       cancer, there is a temporary plan that is
                                                                       offered for a period of 5-6 months at
                                                                       $501, until the actual plan of $288 has
                                                                       an opening.
Health Net Life Insurance.................          107            0  Access was automatically denied over the
                                                                       phone once the condition of cancer was
                                                                       mentioned.
CPIC Life.................................          125            0  Access was automatically denied over the
                                                                       phone once the condition of cancer was
                                                                       mentioned.
Aetna US Healthcare.......................          171            0  Only provide coverage through employment.
CIGNA.....................................          134          N/A  No physical is required, however there is
                                                                       a set of questions that need to be
                                                                       answered before exact rate can be given.
 
                                            FAIRFAX COUNTY, VIRGINIA
 
Celtic Life...............................          167          167  Do not increase their prices based upon
                                                                       any pre-existing condition. However, they
                                                                       will either include a rider coverage,
                                                                       exclusion clause, or decline coverage.
Reliance Insurer/Ultimate choice Company..          113          N/A  Possible chance for increase, however more
                                                                       incline to provide exclusion clause.
Unicare Life and Health Insurance.........          164   \1\;\2\ 16  Based upon actual diagnosis there maybe a
                                                                   4   waiver clause added that will eliminate
                                                                       any sort of payment for conditions
                                                                       related to the cancer for either 2,5, or
                                                                       10 years after entering the plan.
----------------------------------------------------------------------------------------------------------------
\1\ Responses based upon information from sales representatives not actual underwriters.
\2\ Company may or may not increase fees, based upon doctor's findings and underwriters suggestion.




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