Why Health Insurance Policies are Being Cancelled
Despite the promise that “If you like the plan you are in, you can keep it,” the AP reports that plans are being cancelled all over the country because of ObamaCare. One insurer explains it this way:
- A very small share of the market today is “grandfathered” under ObamaCare. To be grandfathered, someone would have had the policy in 2010 and essentially make no changes.
- This means almost every policy on the street today in the individual and small group markets is not legal for one reason or another (essential health benefits, actuarial value ranges, etc.)
- So if policies are not going to be legal in 2014, then insurers have to either “amend” the policies to comply with ObamaCare. Insurers can only do that one of two ways:
* Cancel the policies and migrate individuals into new products that are compliant with the law. (giving the consumer a choice on which compliant product they want to migrate into)
* Amend the policies to comply with all the requirements and include a “rate action” with those amendments.
- How this is happening is a state-by-state decision, with some regulators asking us to cancel & migrate while others are asking us to amend. In most cases it will probably be a cancel & migrate.
Wasn’t that always the idea? He was very careful not to lie. You can keep your plan if you like it, but it won’t really exist anymore
From the link he provided:
“Naturally, this is nothing more than a disguise for Obama’s wealth distribution scheme. He forces the young and healthy to buy coverage they don’t need in order to subsidize Cadillac coverage for those who neither need it or can afford it.”
“This is also a classic case of the media making sure they are on the record reporting something, but only doing so after it is too late to hurt their big government agenda. The media wanted ObamaCare to pass, so the media refused to do any kind of reporting like this when it might have derailed the legislation before it became law.”
Your assessment and those quotes are right on target. I’m sure we’ll be inundated with positive coverage once this thing is fully implemented.
Soon private insurance won’t exist in health care and we’ll end up with single payer, like Obama wanted all along. Then, like any government monopoly, quality will continuously decline and rationing will be required. Care will be appropriated based on the perceived “value” of a person.
Like “Death Panels”? *Gasp*
Was Sarah Palin right all along? *A Gaspier Gasp*
Wasn’t this the point?
I actually lol’d at the gaspier gasp.
Finite resources have to be allocated. Other countries with universal health care have boards (aka Death Panels) that conduct cost/benefit analyses of people to determine how much health care they should receive.
Yeah, sorry, I was trying to be facetious. I agree with you.
This is so exciting, I can’t wait. I think I’ll move to French Canadia so I can experience it before everyone else.
You’re touching on an interesting discussion, what does Canada think about losing their health care safety net? With America gone they’ll have to find a new place to get quick, quality care.
Oh for crying out loud!! You all said that FMLA would kill your businesses. then higher than poverty level minimum wages would kill your businesses. the higher businesses would kill your businesses. A long time ago, you said vacations and a 40 hour work week would kill your businesses. And once again you are wrong! Just adjust and evolve your business plan, like we did, and you will come out just fine.
One more thing – then make your plan legal, like we did.