Thousands of Americans who were told that they could keep their non-Obamacare-compliant health insurance policies for a little longer are suddenly losing those plans at the end of the year and have to apply for something that is likely more expensive.
The Washington Post has the details:
Cancellations are in the mail to customers in markets where insurers say the policies no longer make business sense. In some states, such as Maryland and Virginia, rules call for the plans’ discontinuation, but in many, federal rules allow the policies to continue through 2017. ...
One reason behind the switch is that insurers determined they can make more money selling plans that comply with the Affordable Care Act, often at higher premiums that may be subsidized by the government.
In short, Obamacare makes it profitable for these insurers to cancel existing policies, leaving consumers with no choice but to sign up for the government-compliant plans.
“They’re getting a lot more revenue, often for the same person,” former insurance executive Robert Laszewski told the Washington Post.
The move by insurance companies to cancel plans not in compliance with Obamacare comes after the White House weathered weeks of criticism last year after millions of consumers received cancellation notices, which clearly contradicted the president’s oft-repeated promise, “if you like the plan you have, you can keep it.”
Some final details from the Washington Post:
It is unclear exactly how many consumers might be affected by the latest round of cancellations. The move by insurers comes in the weeks leading up to Election Day, possibly playing into the hands of the law’s critics. ...
Policyholders will have the choice of switching to different coverage from the same insurer or buying from another one during open enrollment, which begins Nov. 15.
And then there’s this:
While there is no national tally of how many people might be affected, brokers and insurers report that many individuals and small businesses renewed the old policies, if they had the choice, because they often cost less than new coverage.
So, remember Obamacare and all the problems it has caused for consumers? Is there any reason why Republican candidates going into the midterms have more or less stopped talking about this?