The latest wave to hit the shore of Obamacare consists of two bills, one being offered in the House and the other in the Senate. The House bill would allow insurance companies to offer now and in the future policies that were in effect prior to the current wave of cancellations generated by Obamacare requirements. The Senate bill, put together by Mary Landrieu of Louisiana, would force insurance companies to once again offer the plans cancelled by Obamacare for the next year to the folks who had them previously.
The Senate bill is a joke. Putting off the date of cancellation of these policies for a year is not a solution. It is just adopting a "kick the can down the road" strategy in healthcare. We have all seen how poorly that strategy works with the economy and the federal budget. Choosing that as the remedy for a national crisis caused by Obamacare would be insane. Do we really want millions of people who got cancellation notices this year to get them again next year? On top of this problem, there is also the problem of the insurance companies ability to comply. The carriers cannot sell a policy unless it has been fully approved by the state in which it is being sold. That approval process takes time. The policy has to be submitted, reviewed, and approved. Some states require public hearings as part of that process. In compliance with the requirements of Obamacare, the insurance companies did not even start that six month process since they were banned from selling the insurance. Even if the process were to start now, there is no way that the state law requirements could be met by the first of the year. So the Landrieu bill in the Senate would force the federal government to override all the state laws about approval and regulation of health insurance, a move which doesn't even rise to the level of gross stupidity.
The House bill is better, but it too is not a panacea. Fortunately, the House bill allows carriers to sell old policies into the future without any limit. This will, at least, reduce the current crisis regarding cancellations in the private insurance market. The crisis is not just put off for a year. The insurance companies, however, may not wish to continue to offer certain of their old policies, so there still may be cancellations. Further, the state requirements may prevent sales of the existing policies in 2014 for many months.
Then there is the issue of premiums. Every policy out there has a premium that was set for a year. The insurance companies need to get approval of their rates for their 2014 rates in nearly all states. That is another process that has to be followed and for which there is insufficient time. What will the premiums be for these policies sold under the House and Senate bills?
The way around this is clear. The problem is Obamacare, not just one of the lies that president Obama told to get it passed. The statute needs to be repealed. In the interim, there should be a law passed that provides that insurance companies can reinstate policies that they previously sold and offer them for sale to all customers at the rate of the 2013 premium plus 3% to cover increased costs. That law should allow the sale despite state laws but only until July 1, 2014. That would give the carriers and the states seven and a half months to follow the normal regulatory procedures in an orderly fashion.
The Senate bill is a joke. Putting off the date of cancellation of these policies for a year is not a solution. It is just adopting a "kick the can down the road" strategy in healthcare. We have all seen how poorly that strategy works with the economy and the federal budget. Choosing that as the remedy for a national crisis caused by Obamacare would be insane. Do we really want millions of people who got cancellation notices this year to get them again next year? On top of this problem, there is also the problem of the insurance companies ability to comply. The carriers cannot sell a policy unless it has been fully approved by the state in which it is being sold. That approval process takes time. The policy has to be submitted, reviewed, and approved. Some states require public hearings as part of that process. In compliance with the requirements of Obamacare, the insurance companies did not even start that six month process since they were banned from selling the insurance. Even if the process were to start now, there is no way that the state law requirements could be met by the first of the year. So the Landrieu bill in the Senate would force the federal government to override all the state laws about approval and regulation of health insurance, a move which doesn't even rise to the level of gross stupidity.
The House bill is better, but it too is not a panacea. Fortunately, the House bill allows carriers to sell old policies into the future without any limit. This will, at least, reduce the current crisis regarding cancellations in the private insurance market. The crisis is not just put off for a year. The insurance companies, however, may not wish to continue to offer certain of their old policies, so there still may be cancellations. Further, the state requirements may prevent sales of the existing policies in 2014 for many months.
Then there is the issue of premiums. Every policy out there has a premium that was set for a year. The insurance companies need to get approval of their rates for their 2014 rates in nearly all states. That is another process that has to be followed and for which there is insufficient time. What will the premiums be for these policies sold under the House and Senate bills?
The way around this is clear. The problem is Obamacare, not just one of the lies that president Obama told to get it passed. The statute needs to be repealed. In the interim, there should be a law passed that provides that insurance companies can reinstate policies that they previously sold and offer them for sale to all customers at the rate of the 2013 premium plus 3% to cover increased costs. That law should allow the sale despite state laws but only until July 1, 2014. That would give the carriers and the states seven and a half months to follow the normal regulatory procedures in an orderly fashion.
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