Obama administration knew millions could not keep their health insurance

[The Nature Boy 4,224]

http://investigations.nbcnews.com/_news/2013/10/29/21222195-obama-administration-knew-millions-could-not-keep-their-health-insurance?lite

By Lisa Myers and Hannah Rappleye, NBC News
President Obama repeatedly assured Americans that after the Affordable Care Act became law, people who liked their health insurance would be able to keep it. But millions of Americans are getting or are about to get cancellation letters for their health insurance under Obamacare, say experts, and the Obama administration has known that for at least three years.

Four sources deeply involved in the Affordable Care Act tell NBC News that 50 to 75 percent of the 14 million consumers who buy their insurance individually can expect to receive a “cancellation” letter or the equivalent over the next year because their existing policies don’t meet the standards mandated by the new health care law. One expert predicts that number could reach as high as 80 percent. And all say that many of those forced to buy pricier new policies will experience “sticker shock.”
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None of this should come as a shock to the Obama administration. The law states that policies in effect as of March 23, 2010 will be “grandfathered,” meaning consumers can keep those policies even though they don’t meet requirements of the new health care law. But the Department of Health and Human Services then wrote regulations that narrowed that provision, by saying that if any part of a policy was significantly changed since that date -- the deductible, co-pay, or benefits, for example -- the policy would not be grandfathered.
Buried in Obamacare regulations from July 2010 is an estimate that because of normal turnover in the individual insurance market, “40 to 67 percent” of customers will not be able to keep their policy. And because many policies will have been changed since the key date, “the percentage of individual market policies losing grandfather status in a given year exceeds the 40 to 67 percent range.”
That means the administration knew that more than 40 to 67 percent of those in the individual market would not be able to keep their plans, even if they liked them.
Yet President Obama, who had promised in 2009, “if you like your health plan, you will be able to keep your health plan,” was still saying in 2012, “If [you] already have health insurance, you will keep your health insurance.”
“This says that when they made the promise, they knew half the people in this market outright couldn’t keep what they had and then they wrote the rules so that others couldn’t make it either,” said Robert Laszewski, of Health Policy and Strategy Associates, a consultant who works for health industry firms. Laszewski estimates that 80 percent of those in the individual market will not be able to keep their current policies and will have to buy insurance that meets requirements of the new law, which generally requires a richer package of benefits than most policies today.
The White House does not dispute that many in the individual market will lose their current coverage, but argues they will be offered better coverage in its place, and that many will get tax subsidies that would offset any increased costs.
“One of the main goals of the law is to ensure that people have insurance they can rely on – that doesn’t discriminate or charge more based on pre-existing conditions. The consumers who are getting notices are in plans that do not provide all these protections – but in the vast majority of cases, those same insurers will automatically shift their enrollees to a plan that provides new consumer protections and, for nearly half of individual market enrollees, discounts through premium tax credits,” said White House spokesperson Jessica Santillo.
“Nothing in the Affordable Care Act forces people out of their health plans: The law allows plans that covered people at the time the law was enacted to continue to offer that same coverage to the same enrollees – nothing has changed and that coverage can continue into 2014,” she said.

The Affordable Care Act will not affect most traditional employer-based plans, but many of those who purchased insurance policies on their own will see higher premiums. This is in part due to the 10 essential health benefits insurance providers are now required to include. NBC's Peter Alexander reports.
Individual insurance plans with low premiums often lack basic benefits, such as prescription drug coverage, or carry high deductibles and out-of-pocket costs. The Affordable Care Act requires all companies to offer more benefits, such as mental health care, and also bars companies from denying coverage for preexisting conditions.
Today, White House spokesman Jay Carney was asked about the president’s promise that consumers would be able to keep their health care. “What the president said and what everybody said all along is that there are going to be changes brought about by the Affordable Care Act to create minimum standards of coverage, minimum services that every insurance plan has to provide,” Carney said. “So it's true that there are existing healthcare plans on the individual market that don't meet those minimum standards and therefore do not qualify for the Affordable Care Act.”
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Other experts said that most consumers in the individual market will not be able to keep their policies. Nancy Thompson, senior vice president of CBIZ Benefits, which helps companies manage their employee benefits, says numbers in this market are hard to pin down, but that data from states and carriers suggests “anywhere from 50 to 75 percent” of individual policy holders will get cancellation letters. Kansas Insurance Commissioner Sandy Praeger, who chairs the health committee of the National Association of Insurance Commissioners, says that estimate is “probably about right.” She added that a few states are asking insurance companies to cancel and replace policies, rather than just amend them, to avoid confusion.
A spokesman for America's Health Plans says there are no precise numbers on how many will receive cancellations letters or get notices that their current policies don’t meet ACA standards. In both cases, consumers will not be able to keep their current coverage.
Those getting the cancellation letters are often shocked and unhappy.

[decocker 7,198]

everyone knew that if their current coverage didn't meet the new minimums, their plan would no longer be complaint.

didn't they?

[kytwell 179]

http://www.youtube.com/watch?v=wfl55GgHr5E

My brother is able to keep his plan, but his rates will double.

For now, I'm still covered by my employer provided covereage.

[decocker 7,198]

yeah, he should have said, if you like your plan and your plan meets the new requirements - you can keep your current plan.

it's ashame we can't rely on a certain level of comprehension from the general public.

[Mr. Big Dog 10,747]

Obama administration knew millions could not keep their health insurance

Is that the "pro-admin reporting" that Harsh keeps talking about?

With friends like these at NBC, Obama sure needs no enemies.

Edited October 29, 2013 by Mr. Big Dog

[Harsh_77 716]

Obama administration knew millions could not keep their health insurance

Is that the "pro-admin reporting" that Harsh keeps talking about?

With friends like these at NBC, Obama sure needs no enemies.

Backtrack on the promises nothing new from the admin.

The policy of this admin is very simple they promise something and when it does not work ..... they go out and say we did not mean it that way... ohh you did not read the fine prints.

[Danno 1,228]

yeah, he should have said, if you like your plan and your plan meets the new requirements - you can keep your current plan.

it's ashame we can't rely on a certain level of comprehension from the general public.

NOw you are mocking the masses of Americans who expect the President to talk straight to them.

He promised to make Healthcare affordable. (Not true)

He warned doing nothing would bankrupt the country. (His program will)

He promised "If people like what they have" they can keep it. (not true and he knew it)

This is touching average people, in their lives and paycheck.

Remember what I told you-

State programs are predicated on the assumption "The individual will get more out of it than he puts in." for millions this will not be the case.

[Mr. Big Dog 10,747]

Backtrack on the promises nothing new from the admin.

The policy of this admin is very simple they promise something and when it does not work ..... they go out and say we did not mean it that way... ohh you did not read the fine prints.

Where's the pro-admin reporting here, though? I thought you said over and over again in the other thread that they only report what the admin tells them to report. So did Obama tell NBC to report this story? Why would he do that?

[Mr. Big Dog 10,747]

He promised "If people like what they have" they can keep it. (not true and he knew it)

This is touching average people, in their lives and paycheck.

I get to keep what I got and the slight annual increase in premium is due to my employer lowering their share on the particular plan I selected not because the whole thing is getting more expensive. In fact, the premiums are flat for next year. My share goes up some and my employer's share goes down some. The sky ain't falling.

[Harsh_77 716]

I get to keep what I got and the slight annual increase in premium is due to my employer lowering their share on the particular plan I selected not because the whole thing is getting more expensive. In fact, the premiums are flat for next year. My share goes up some and my employer's share goes down some. The sky ain't falling.

lol ..... People who are saying they got notice and cannot keep their insurance are all lying but since you can keep your insurance with SLIGHT increase everything should be ok.

[Danno 1,228]

Where's the pro-admin reporting here, though? I thought you said over and over again in the other thread that they only report what the admin tells them to report. So did Obama tell NBC to report this story? Why would he do that?

NOw you know as well as I do that sometimes these stories "just get out there" (drudge)

and to ignore them ..... well just drives FOX numbers even higher.

Kinda like the REV WRIGHT thing.

I mean here you had a man running for President for months and not one news agency looked into his back ground, even on the church he attended or the "Black liberation theology" they taught there.

Buy by-gosh when Palins name was mentioned as VP, every flight to alaska was booked within 30 minutes and they turned over every rock, every report card and bathroom rumor they could dig up..

[Mr. Big Dog 10,747]

lol ..... People who are saying they got notice and cannot keep their insurance are all lying but since you can keep your insurance with SLIGHT increase everything should be ok.

lol... Not at all. That's not what I said or implied. What this means is that my employer has offered comprehensive coverage all along and continues to do so. Obamacare does not make that coverage any different, more expensive or anything else that some would like to claim. That is how I always understood that line - if you have a plan you like, you get to keep it. For the vast majority of Americans who have decent employer sponsored coverage, that is true.

Now, there are lots of people that have insurance policies that are not compliant with the ACA requirements - sometimes those policies aren't worth the paper they're printed on. Those policies will no longer be available since Obamacare does set common minimum standards for health insurance policies. That is to ensure that people don't pay for plans that won't provide them the required benefits when they get sick. These people do not get to keep their plans and that much was clear as well.

[decocker 7,198]

NOw you are mocking the masses of Americans who expect the President to talk straight to them.

He promised to make Healthcare affordable. (Not true)

He warned doing nothing would bankrupt the country. (His program will)

He promised "If people like what they have" they can keep it. (not true and he knew it)

This is touching average people, in their lives and paycheck.

Remember what I told you-

State programs are predicated on the assumption "The individual will get more out of it than he puts in." for millions this will not be the case.

lol. same as the old "you didn't build that line" some of you folks were so eager to regurgitate over and over and over again.

of course this is affecting average people, it is affecting everyone - as it should. i don't understand what it is with people today, it's like you think life is all roses and you're the only person on the planet. me me me. but then again, we're not exactly dealing with a bunch of saints, considering most don't even believe healthcare is a right. we're not dealing with a bunch of rocket scientists either, because no matter how many times you are given facts that reflect the obvious piss poor health care system we pay way too much for, you still insist on fighting to allow insurance corporations to pown you.

and seriously, if america could just pull it's tea partyin head out of it's #######, we'd get real and make a swift and final change to a single payer system. end of story.

[Harsh_77 716]

lol... Not at all. That's not what I said or implied. What this means is that my employer has offered comprehensive coverage all along and continues to do so. Obamacare does not make that coverage any different, more expensive or anything else that some would like to claim. That is how I always understood that line - if you have a plan you like, you get to keep it. For the vast majority of Americans who have decent employer sponsored coverage, that is true.

Now, there are lots of people that have insurance policies that are not compliant with the ACA requirements - sometimes those policies aren't worth the paper they're printed on. Those policies will no longer be available since Obamacare does set common minimum standards for health insurance policies. That is to ensure that people don't pay for plans that won't provide them the required benefits when they get sick. These people do not get to keep their plans and that much was clear as well.

What are you trying to say…. Ppl who cannot keep their existing policy that they like do not have decent employer?

Are you trying to justify reason for those guys who lost the policy by saying “sometimes those policies aren't worth the paper they're printed on”?

[Harsh_77 716]

lol. same as the old "you didn't build that line" some of you folks were so eager to regurgitate over and over and over again.

of course this is affecting average people, it is affecting everyone - as it should. i don't understand what it is with people today, it's like you think life is all roses and you're the only person on the planet. me me me. but then again, we're not exactly dealing with a bunch of saints, considering most don't even believe healthcare is a right. we're not dealing with a bunch of rocket scientists either, because no matter how many times you are given facts that reflect the obvious piss poor health care system we pay way too much for, you still insist on fighting to allow insurance corporations to pown you.

and seriously, if america could just pull it's tea partyin head out of it's #######, we'd get real and make a swift and final change to a single payer system. end of story.

Should we blame the Tea Party for the healthcare fiasco?

I am sure you would be more than happy in doing that. Time after time experts had said this is a bad deal.... its is not worth it but dems had their head up the ####### not listening.

New approach was not beneficial to noone other than insurance companies.