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WH ‘Knew’ Millions Would Lose Healthcare Plans

From a seemingly surprised NBC News:

Obama administration knew millions could not keep their health insurance

By Lisa Myers and Hannah Rappleye | October 29, 2013

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.”

How can this be news to NBC? We have said all along that the number will be 100%. Because no insurance company can offer coverage at the same price with all of the new Obama-Care mandates piled on.

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.

NBC subsequently dropped this key paragraph. (See below.) Though they eventually re-posted it. But the point of it is the grandfather clause was built to fail, because insurance companies have to tweak their policies all the time. That is the nature of the business.

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.” …

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…

A) They will still lose their current health plan. B) Most people won’t get any subsidies, because the cutoff is below the average US income. And the subsidies won’t make up the difference in most cases, anyway.

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.” …

Which nobody in the White House ever said once, much less "all along."

And we have this ‘push back,’ via the White House water carriers at the Politico:

White House rejects NBC Obamacare report

By JENNIFER HABERKORN | October 28, 2013

The Obama administration is strongly pushing back Monday night on an NBC News report that the White House has known for years that millions of consumers would lose their insurance under Obamacare.

“NBC ‘scoop’ cites ‘normal turnover in the indiv insurance market’. That’s a) not new b) not caused by #ACA c) the problem #ACA will solve,” White House principal deputy press secretary Josh Earnest said in a tweet.

On Twitter, Dan Pfeiffer called it a “misleading” story.

“FACT: Nothing in #Obamacare forces people out of their health plans. No change is required unless insurance companies change existing plans,” Valerie Jarrett wrote.

These people are simply liars. And their ‘push back’ is aimed at the low information voter. As are all of Obama’s so-called ‘arguments.’

To be sure, many consumers will lose their insurance plans in 2014. How directly that’s related to the law can be debated.

Really? How many millions of insurance policies were cancelled last year? Is this sudden gigantic surge in cancellations just a coincidence?

The White House says it’s not forcing anyone off those plans – the insurers are if they change their policy and it loses its grandfathered status…

Again, insurance policies are constantly being tweaked. The ‘grandfather’ clause in Obama-Care was purposely written so as guarantee that no insurance plan would be grandfathered for long.

Meanwhile, there is also this update via the Blaze:

NBC News’ Bombshell Obamacare Report Disappears Due to ‘Publishing Glitch’ – and There Was Something Missing From Republished Version

By Jason Howerton | October 29, 2013

NBC News is claiming that a “publishing glitch” caused its bombshell investigative report on Obamacare to disappear for a period of time. The news outlet has since republished the scathing article, however, a key paragraph was temporarily removed — and no editor’s note explaining why was included…

As if the mysterious “glitch” wasn’t strange enough, NBC News — inadvertently or not — later republished the article without the following key paragraph:

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.

It was added back in to the article roughly 30 minutes after it was republished, but the discrepancy was again not noted in the article.

Did NBC get a call from the White House? We suspect they did.

This article was posted by Steve Gilbert on Tuesday, October 29th, 2013. Comments are currently closed.

5 Responses to “WH ‘Knew’ Millions Would Lose Healthcare Plans”

  1. NBC must be catching hell from there ridiculously misinformed viewers to even run a story like this to start with. That tells me even their viewers can read their insurance cancellation notices and the higher prices for their policies if they were lucky enough to even get on the website.

    No group of people are more deserving of this debacle than this group. My heart was filled with joy when I saw what this Law was doing to these people, until the realization of how this whole mess is just dragging innocent people and the rest of the country down the toilet. By design!

  2. TrustButVerify

    I’m in my 30’s, food conscious and exercise almost daily. I see the doctor yearly for a physical.

    I have individual health coverage and pay $75 a month with a $3000 deductible. I received my “cancellation” letter almost two weeks ago. It states that the policy is no longer valid under the terms of the Preventative Care Act.

    Here is the good news…

    My health care provider will allow the policy (or a legal form of it) to roll over for another year. I will be charged an additional $10, raising my cost to $85 per month for 2014…for the same amount of coverage.

    Here’s the bad news…

    If I where to stick with the same policy for 2015, it will jump to nearly $300 per month…FOR THE SAME AMOUNT OF COVERAGE!

    This must be a nightmare…nope, just living through another Obama Administration.

  3. canary

    I guess reporters and media should have been exempted from obama care.


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