Governor Rendell Commends Health Insurance Industry for Not Challenging Loophole in Healthcare Reform Bill

Children Guaranteed Health Insurance Regardless of Pre-Existing Conditions

HARRISBURG, Pa., March 31 /PRNewswire-USNewswire/ -- Governor Edward G. Rendell and Insurance Commissioner Joel Ario today responded to the decision by the nation's health insurers to forgo a challenge to a loophole in the recently passed national healthcare reform bill to guarantee insurance for children regardless of pre-existing conditions.

"I commend the health insurance industry for agreeing not to contest federal rules that will close a loophole in the federal health reform law and guarantee all children access to health insurance without regard to any pre-existing conditions as of Sept. 23, 2010," Governor Rendell said. "The law, as passed, would have required insurers to eliminate pre-existing condition exclusions from any group policy or any current family policy, but it would have allowed insurers to deny coverage to new family applicants based on pre-existing conditions.

"The industry's willingness to work with the Obama Administration to make insurance available to all children this year is a positive step that I hope reflects a new spirit of cooperation in making health reform work for all Americans."

"In that same spirit of cooperation, I join with the Governor to call on health insurers here in Pennsylvania to work with us and the General Assembly to ensure a smooth transition for the small group and individual markets as we implement the reforms that will require fair pricing through an insurance exchange as of Jan. 1, 2014," Commissioner Ario said.

"Pennsylvania is one of only two states that does not limit rate increases in the small group market, and it is critical that insurers not exploit that situation with unfair rate increases between now and 2014. The Insurance Department is in the process of meeting with insurers to work out a fair transition, which is likely to require new legislation to ensure full compliance."    

SOURCE Pennsylvania Office of the Governor