"Consumers Who Buy Individual Health Policies Feel Trapped"

The headline in the February 20, 2010, edition of The Los Angeles Times tells a story, "Consumers who buy individual health policies feel trapped. They have few options other than dropping coverage as insurers raise rates and slash benefits. Insurers blame the soaring cost of medical care and the churn of customers in the individual market."

No argument from me; for individual and small group health insurance policies, the rates—and rate increases—are crazy. But, the insurers' complaint about churn is spot on. Until we have universal health care coverage for 95% or more of the population, this ‘shift the risk’ game will continue. There is nothing that consumers or insurers can do about it. Solutions? Only two.


1. The government provides catastrophic health insurance for everyone, and/or


2. Employers are required to provide—and individuals are required to buy—health insurance.


Hopefully, our representatives in Washington will eventually understand these basic health care financing principles.