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Cause and Effect

February 18, 2010

‘Wellpoint’s rate hikes are the direct result of the Golden State’s insurance regulations-the kind that Democrats want to impose on all 50 states. Under federal Cobra rules, the unemployed are allowed to keep their job-related health benefits for 18 to 36 months. California then goes further and bars Anthem from dropping these customers even after they have exhausted Cobra. California also caps what Anthem can charge these post-Cobra customers. Most other states direct these customers to high-risk pools that are partly subsidized, but California requires the individual market to absorb the customers and their costs.”

from WSJ

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