WASHINGTON, D.C. President Barack Obama appeared today to say that apparently buying health insurance online is “complicated”. Obama announced that he will attempt to make good on his promise by allowing insurance plans to be extended for another year. The plans were cancelled due to new requirements in the Affordable Care Act that made them unworkable. [contextly_sidebar id=”63e92397b9f24d970b7e4fb1dfbcd630″]
“I said we would do everything we can to fix this problem and today I’m offering an idea that would help do it. Already people who pre-date the Affordable Care Act can keep those plans if they haven’t changed, that was already in the law. That’s what’s called a grandfather clause that was included in the law,” the president said. “Today we’re going to extend that principle both people whose plans have changed since the law took effect so state insurance commissioners still have the power to decide what plans can and can’t be sold in their states but the bottom line is insurers can extend current plans that would otherwise be cancelled into 2014 and Americans whose plans have been cancelled can choose to re-enroll in the same kind of plan. We’re also requiring insurers to extend current plans to inform their customers about two things. One, that protections, what protections these renewed plans don’t include. Number two, that the [Obamacare] marketplace offers new options with better coverage and tax credits that might help you bring down the costs. So, if you received one of these letters, I encourage you to take a look at the marketplace, even if the website isn’t working as smoothly as it should be for everybody yet. The plan comparison tool that lets you browse costs for new plans near you is working just fine. Now this fix won’t solve every problem for every person but it’s going to help a lot of people. Doing more will require work with Congress.”
The fix is for one year only and will expire in 2015. This is perfect timing to aid Democrats in the 2014 midterm elections.
Insurance companies are now being forced to scramble in order to change their benefit plans, putting them in a very difficult position after having mailed out so many cancellation letters. An estimated 5 million people have received notices that their polices will be cancelled. Smaller insurers will be faced with steeper challenges to absorb costs associated with changing their business models so late in the game.
The move signals a major defeat by the Obama administration in enacting the president’s signature health care plan. The Washington Post reported today that only 106,000 people enrolled, far lower than the 500,000 desired by the White House.
