Covered California (the state’s health exchange) to President Obama: “Drop Dead”
California rejects President Obama’s plea to allow consumers to KEEP their health plans, as he promised repeatedly in the months leading up to passage of ACA. Last week, the President apologized for the botched rollout and said that he would magically extend the deadline for individuals to switch from the insurance policies they like (and want to keep) to the overpriced ones he thinks are better for them.
“That means that no matter how we reform health care, we will keep this promise to the American people: If you like your doctor, you will be able to keep your doctor, period. If you like your health-care plan, you’ll be able to keep your health-care plan, period. No one will take it away, no matter what.”
– President Obama Speech to the American Medical Association
June 15, 2009 (as the health-care law was being written.)
That’s a big deal because the President’s credibility is on the line. Mitt Romney said the original Obama promise showed ‘fundamental dishonesty’. Interesting note: Bing search for ‘fundamental dishonesty’ shows 17 out of 18 top hits relate to Romney’s quote and Obamacare. Former president Bill Clinton told Obama that he needed to make good on his promise. So the President, without force of law or congressional approval, unilaterally decided to extend the deadline for a year. Not even close to the ‘keep it’ promise, but it was a step in the right direction.
Unfortunately, extending the deadline can ruin participation in the MUCH MORE EXPENSIVE Obamacare health plans. So Covered California rejected the delay. That’s important because any insurance company that is listed on the CoveredCA exchange (BTW, they pay a lot of money for the right to be on the exchange) signed an agreement that they would DISCONTINUE their non-ACA compliant (read AFFORDABLE) health plans. That means that CoveredCA (not the President, not the governor, not the insurance commissioner) decides when these plans will be discontinued. And it wants them discontinued without delay.
So now, beleaguered Californians are faced with new ACA-compliant policies. And premiums that are 64% to 146% higher, for starters. Check out this excellent Forbes article. Lack of participation by overcharged youth (who often go YEARS without needing a doctor even once, much less enough to justify even ONE MONTH’S ACA PREMIUM) could cause premiums to SKYROCKET further in coming years. And as a special bonus, Obamacare promises to pay insurers TAXPAYER SUPPORTED PROFITS for the first 3 years, on top of potentially skyrocketing premiums.
California boots non-Obamacare plans รง Another article that tells it like it is.
“The move effectively rejects the fix President Barack Obama proposed to salve the deeply troubled rollout of the Affordable Care Act. That state already faces an age-old health insurance challenge: The old folks are outrunning the kids in the race to sign up for California’s insurance. If the trend continues, it might [might????] lead to higher premiums down the line.”
‘Fundamental Dishonesty’
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