State efforts in the 1990s to reintroduce community rating and guaranteed issue led to ____.

Question

Quizplus · Accepted Answer

Community rating and guaranteed issue policies in the 1990s often led to healthier individuals dropping their insurance coverage due to rising premiums. These policies aimed to make insurance more accessible and fair by preventing insurers from setting premiums based on health status or denying coverage for pre-existing conditions. However, without a mandate for everyone to purchase insurance, healthier individuals, who assessed themselves as less likely to need medical care, were more inclined to forgo coverage, leading to a sicker and more expensive insurance pool. This, in turn, drove up premiums further, exacerbating the issue.

State Efforts in the 1990s to Reintroduce Community Rating and Guaranteed