Insurers may discontinue offering a plan under certain conditions. No preexisting condition exclusions are allowed relating to pregnancy or a condition for which medical advice was received during a period when the person had qualifying coverage. The substitute also includes several provisions with an effective date of July 1, 2001. Those entities that provide plans only for Medicaid recipients are exempted from membership. The association's board is responsible for developing a plan to provide for the sharing of losses related to individuals enrolled in health plans without medical underwriting.
Supporters say that legislation is needed to facilitate access to affordable health care insurance.
Many self-employed individuals and those working for small businesses are unable to obtain health insurance at affordable rates once they file claims or develop health risks. Because many individuals are able to obtain insurance only through employment with a large business or the government, they are unable to start a small business or remain employed by a small business such as a family farm. This substitute includes rating reforms that allow people who have been insured for years to be able to continue to afford health insurance when they develop health risks. The substitute's reforms also allow uninsured people to obtain more affordable insurance rates. In addition, the substitute includes risk-sharing protections for losses by insurers.