Some states' efforts to reform health insurance have had "significant unintended consequences" over the past decade, according to a America's Health Insurance Plans.
In a report released Friday and based on a study by Milliman Inc., AHIP examined how eight states' various efforts to reform coverage had negative consequences for consumers and potentially limited coverage, according to a statement released by Mohit Ghose, a spokesman for AHIP.
States examined in the study included Kentucky, Maine, Massachusetts, New Hampshire, New Jersey, New York, Vermont, and Washington.
"(The report) demonstrates that insurance reforms without universal access drives up healthcare costs for consumers and encourages individuals who have health insurance to drop insurance and take the financial risk of being uninsured," said AHIP President Karen Ignagni.
The study looked at two reform efforts instituted by states in the study: "guarantee issue," which requires insurers to sell an individual health insurance policy without regard to a person's health; and "community rating," which requires that all consumers pay the same or similar premiums without regard to age or gender.
The report showed that these initiatives potentially cause individuals to wait until they have health problems before buying insurance.
"While these reform goals were laudable, they frequently had unintended consequences that disrupted the individual marketplace," said Leigh Wachenheim, principal and consulting actuary with Milliman.
Overall, the report found that though states implemented guarantee issue and community rating to improve access, they actually saw a rise in insurance premiums, a reduction of individual insurance enrollment, and an exodus of health insurers from the individual insurance market. In addition, the report found no significant decrease in the uninsured population in states that implemented these initiatives.
As a result, several states that initially implemented guarantee issue and community rating have since repealed or modified their laws with the intent of stabilizing the insurance marketplace and providing consumers with more choices and access to coverage, AHIP said.