After yesterday's "fix" announced by president Obama for those who relied on Obama's promise that we could all keep our health insurance if we liked our policies, one would think that the level of uncertainty afflicting Americans would lessen. The reality is, however, that just the opposite is true. Just think about it.
1. So far, over 5 million policies have been cancelled across the country. Obama yesterday said that insurance companies could (but don't have to) continue to sell those policies for another year. Those continuing sales, however, can only take place if the state commissioner of insurance in the relevant state approves the continuing sale under state regulations and if the insurance company sends the consumer a letter explaining (a) the difference between the old policy and those available on the Obamacare exchanges and (b) the list of policies available on the exchanges.
2. The initial reaction from the insurance commissioners across the country has been negative. Some, like the one in Washington state, have rejected the continuing sale of the old policies. Others have expressed concern about whether or not they would be able to manage the regulatory process quickly enough to allow the sales of the old policies to proceed. At least one commissioner has welcomed the president's action.
3. The various insurance companies have also had a mostly negative reaction. The companies have worked for many months to put themselves in compliance with Obamacare. Resumption of sales of the old policies will also take months of work. Just the letters explaining the differences between the old policies and those available under Obamacare will take weeks to complete, but there is much more. Some companies have withdrawn from certain states as part of dealing with the new law; re-entry into those states will prove complicated to say the least.
4. Meanwhile, there will be millions upon millions of people whose policies have been cancelled starting in 2014. Before Obama spoke yesterday, all of these people had the choice and the need to sign up for an Obamacare policy if they wanted to continue having health insurance. Now, that is no longer true. There will surely be millions of people who now think that thanks to what Obama did, they will be able to continue their old policies for which they got cancellation notices. These folks will see no need to buy a policy on the exchange; they will expect their old policy to be available for sale. But that may not be true! If the commissioner of insurance of their state decides not to permit the sales, then their old policy will be gone. If the insurance company decides not to sell the old policy, then the old policy will be gone. If there is not enough time to resume sales before the old policy expires, then these folks will be left without coverage.
What all this means is that come January 1, 2014, there are going to be hundreds of thousands or millions of people who expect to have insurance but who won't. This will cause unspeakable chaos across America. Just imagine the stories of cancer patients who suddenly learn that their coverage is gone.
The truth is that what Obama did yesterday was nothing more than once again indicating to folks that if they like their plan, they can keep it. Once again, Obama knows that this is not true. He does not seem to care, however. Politics triumphs over what is good for the American people.
1. So far, over 5 million policies have been cancelled across the country. Obama yesterday said that insurance companies could (but don't have to) continue to sell those policies for another year. Those continuing sales, however, can only take place if the state commissioner of insurance in the relevant state approves the continuing sale under state regulations and if the insurance company sends the consumer a letter explaining (a) the difference between the old policy and those available on the Obamacare exchanges and (b) the list of policies available on the exchanges.
2. The initial reaction from the insurance commissioners across the country has been negative. Some, like the one in Washington state, have rejected the continuing sale of the old policies. Others have expressed concern about whether or not they would be able to manage the regulatory process quickly enough to allow the sales of the old policies to proceed. At least one commissioner has welcomed the president's action.
3. The various insurance companies have also had a mostly negative reaction. The companies have worked for many months to put themselves in compliance with Obamacare. Resumption of sales of the old policies will also take months of work. Just the letters explaining the differences between the old policies and those available under Obamacare will take weeks to complete, but there is much more. Some companies have withdrawn from certain states as part of dealing with the new law; re-entry into those states will prove complicated to say the least.
4. Meanwhile, there will be millions upon millions of people whose policies have been cancelled starting in 2014. Before Obama spoke yesterday, all of these people had the choice and the need to sign up for an Obamacare policy if they wanted to continue having health insurance. Now, that is no longer true. There will surely be millions of people who now think that thanks to what Obama did, they will be able to continue their old policies for which they got cancellation notices. These folks will see no need to buy a policy on the exchange; they will expect their old policy to be available for sale. But that may not be true! If the commissioner of insurance of their state decides not to permit the sales, then their old policy will be gone. If the insurance company decides not to sell the old policy, then the old policy will be gone. If there is not enough time to resume sales before the old policy expires, then these folks will be left without coverage.
What all this means is that come January 1, 2014, there are going to be hundreds of thousands or millions of people who expect to have insurance but who won't. This will cause unspeakable chaos across America. Just imagine the stories of cancer patients who suddenly learn that their coverage is gone.
The truth is that what Obama did yesterday was nothing more than once again indicating to folks that if they like their plan, they can keep it. Once again, Obama knows that this is not true. He does not seem to care, however. Politics triumphs over what is good for the American people.
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