Two problems that could undermine the Affordable Care Act
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The second alarming development concerns reports that insurance companies might be using backdoor methods to dissuade ill and therefore expensive patients from enrolling in their plans. Before the Affordable Care Act, insurers simply rejected applications from people with preexisting conditions. Now thats illegal, which is one of the laws centerpiece achievements. So, patients rights groups worry, insurers are limiting access to important pharmaceuticals, such as anti-HIV drugs, to push the ill away.
We dont know how widespread this practice will be. So far, we have only anecdotes about suspiciously designed coverage plans for prescription drugs. Over time, regulators could try to crack down on the practice if it becomes a problem.
In the first few years, the laws design should limit the benefits that companies could realize by screening out sick customers. But the fact that insurance companies have any opportunity to do this is the result of state and federal officials deciding to leave a number of decisions about drug coverage to insurance companies, instead of taking a prescriptive approach more akin to the rules that govern Medicares Part D drug program.
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