Possible Discrimination Practices Being Investigated

The New York Times   (12/23, A19, Pear, Subscription Publication) reports that the Obama Administration “said Monday that it would investigate prescription drug coverage and other benefits offered by health insurance companies to see if they discriminated against people with AIDS, mental illness, diabetes or other costly chronic conditions.” Officials said they had become aware of “discriminatory benefit designs” that discourage people from enrolling because of age or medical condition. In a letter to health insurers, “administration officials said that a health plan could be engaging in unlawful discrimination if its list of approved drugs excluded all medicines needed to treat a particular condition, or if it restricted access to such drugs by charging large co-payments or requiring prior authorization.” The Times notes the Affordable Care Act mandates that insurers accept all applicants for coverage and cannot charge higher premiums based on a person’s pre-existing conditions.

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Jeffrey R. Ungvary President

Jeffrey R. Ungvary