AP: You May Be Losing That Health Plan You Like Under Obamacare

Nice to see that the Associated Press finally notices something that Obamacare opponents pointed out even before it was passed

Like your health care policy? You may be losing it.

obamacare

Many people who buy their own health insurance could get surprises in the mail this fall: cancellation notices because their current policies aren’t up to the basic standards of President Barack Obama’s health care law.

They, and some small businesses, will have to find replacement plans – and that has some state insurance officials worried about consumer confusion.

Many medium and large companies will also be dumping their plans for a variety of reasons, including the above, concern that one employee will obtain insurance through an exchange (meaning the company has to pay the fine for all its employees), it’s cheaper to let employees get insurance through the exchanges, and others.

The goal is to cover most of the nation’s nearly 50 million uninsured, but even Obama says there will be bumps in the road. And discontinued insurance plans could be another bump.

Now it’s 50 million? It was originally 30-40 million…oh,right, Obameconomy. Lots of people without jobs.

But supporters of the overhaul are betting that consumers won’t object once they realize the coverage they will get under the new law is superior to current bare-bones insurance. For example, insurers will no longer be able to turn people down because of medical problems.

They can’t turn people down now, even before exchanges go into effect. But, they can charge people out the ying yang for the coverage. And it’s not just “bare bones coverage plans” that will be dropped for the reasons, including being not in compliance.

Other bumps on the road to the new health care law include potentially unaffordable premiums for smokers unless states act to waive them, a new $63-per-head fee that will hit companies already providing coverage to employees and dependents, and a long-term care insurance program that had to be canceled because of the risk it could go belly up

Wait, wait, what’s this $63 per head fee? This is the first I’ve heard about it, but, apparently the news noticed it (quietly) back in mid-December 2012. It’s a fee designed to offset the cost of covering those with pre-existing conditions, to the tune of $25 billion. So, yet another fee/tax in a Bill chock full of fees/taxes.

The National Association of Insurance Commissioners says it is hearing that many carriers will cancel policies and issue new ones because administratively that is easier than changing existing plans.

So individuals and companies will have to then go insurance shopping. The insurance companies will surely send notices that include options, but people will have to deal with looking through it all, and it could include higher up front costs

“You’re going to be forcibly upgraded,” said Bob Laszewski, a health care industry consultant. “It’s like showing up at the airline counter and being told, ‘You have no choice, $300 please. You’re getting a first-class ticket, why are you complaining?'”

It seems that, so far, the majority of promises made about Obamacare have had expiration dates. This is exactly the train wreck opponents said it would be, with over 16,000 pages of regulations written so far, costs going up up up, overall government outlays going up up up, companies shifting employees to 30 hours or less, and not being able to keep your plan.

Crossed at Pirate’s Cove. Follow me on Twitter @WilliamTeach.

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