Skip to comments.Analysis: Obama's Healthcare 'Fix' Won't Work; More of a Political Stunt
Posted on 11/16/2013 4:44:42 PM PST by 2ndDivisionVet
President Barack Obama's so-called "fix" to the problem of Americans losing their current health insurance is more like a political stunt than an actual fix to the problem.
Obama's Thursday speech was an attempt to address the controversy over his broken promise: If you like your current health care plan you can keep it, he has said repeatedly. Insurance companies, though, have been sending cancellation notices to millions of Americans whose policies do not comply with the Affordable Care Act's, or Obamacare's, coverage mandates.
Instead of canceling those plans, Obama said, insurance companies can extend those plans through 2014, thus giving another year before Obama's promise will be broken.
There is one problem, though, with Obama's "fix" he does not have the authority to extend any insurance plan that does not comply with current law, and current law is the ACA.
Under the U.S. Constitution, laws are made by Congress, not the president. Obama's speech was only, well, a speech. There was no force of law behind it. There is no executive order directing insurance companies or state insurance commissioners to reissue canceled plans for a year. (Obama could not do that via executive order anyway.)
Essentially, Obama is asking the insurance companies to break the law more specifically, the law popularly known as "Obamacare." The insurance companies are, therefore, left with a choice follow the law or follow Obama.
The insurance industry's response was swift. In a Thursday press release, Robert Zirkelbach, head of America's Health Insurance Plans, the main association representing insurance companies, said that making changes to new health policies at this late date "could destabilize the market and result in higher premiums for consumers."
Additionally, if insurance companies were to rewrite insurance policies, to give customers their canceled policies back (and thus help Obama to unbreak his broken promise, at least for another year), they could not even do so based upon Obama's "permission," because insurance companies are regulated at the state level.
Obama already got pushback from Washington state insurance commissioner Mike Kreidler, who announced that his state will not go along with Obama's proposal.
"I have serious concerns," Kreidler wrote, "about how President Obama's proposal would be implemented and more significantly, its potential impact on the overall stability of our health insurance market.
"I do not believe his proposal is a good deal for the state of Washington. In the interest of keeping the consumer protections we have enacted and ensuring that we keep health insurance costs down for all consumers, we are staying the course. We will not be allowing insurance companies to extend their policies. I believe this is in the best interest of the health insurance market in Washington."
Kreidler's response is significant because he is not a Republican or conservative critic of the ACA.
Washington Post reporter Sarah Kliff, who has extensive experience covering insurance commissioners, wrote that Kreidler is "really progressive" and "one of the most liberal regulators." Kreidler, Kliff notes, was faced with the choice of supporting Obama or supporting "Obamacare," and chose the latter.
The Washington Post has a list of the states that will, and will not, go along with Obama's proposal, which will be updated as new information becomes available.
If the problem that needs fixing is that Obama promised Americans they could keep their healthcare plans but some plans are getting canceled, then the solution is to change the law and get rid of the coverage mandates that caused insurance companies to cancel plans.
The reason Obama's healthcare "fix" is so muddled, though, is that it was not designed to fix the law, but to fix the declining poll numbers of Obama and vulnerable Democrats up for reelection in 2014.
I'll follow the sun.
The boy genius has been in so far over his head for so long that he is starting to develop gills. And the funny thing is, he doesn’t have a clue as to how big an ass he really is. It is delusional. He wrecked American foreign policy. He wrecked the economy. He wrecked health car. He pretty much wreck the American auto industry, the coal industry, the student loan industry and the American dollar. Steve Urkel on steroids.
Political stunt? That’s all this windbag knows.
I figured as much—the Fix will not fix anything but give Obama a scape goat. blame the insurance companies! He is hopeing the MSM will save him yet again.
He just wants to get past the mid term elections. That is he last election that he has to deal with. If Obamacare is so great, there should be no delays, no waivers, no exemptions, and no FIXES.
This has put a spotlight on Obama's executive powers. He does have discretion in enforcing laws -- e.g., he could allocate more drug enforcement resources to heroin than marijuana -- but he can't change the law, e.g., declare marijuana legal.
So even if he tells the ins. companies he's not going to enforce Obamacare for a year, it's still against the law to violate it.
The ins. industry is starting to recognize that fact, as shown in another article posted by 2ndDivisionVet.
say it ain’t so, as long as he has his wand, he can do anything. http://i1114.photobucket.com/albums/k521/jyrostng/obama_witchofthenorth.jpg?t=1384634898
From what I’ve heard FL (300,000) and CA (1,000,000+) are telling insurers to offer reissue of old policies. That’s a lot of rate payers maybe lost to the exchanges.
Doesn’t necessarily mean that FL and CA insurers actually will or can offer reissue of old policies.
Florida blue (300,000) will offer to reinstate. In CA the Commissioner wants to but the Exchange made the insurance Companies sigh an agreement. Non-exchange insurers in CAare free to do so. Every policy lost to the exchange is a good thing.
I'm skeptical of that offer coming to fruition any time soon. It sounds like what some Obama butt kissing executive would say without adequately consulting the troops.
President Urkel Xerxes attempting again to rule by decree.
It’s hard to believe that this guy was a con law instructor.
Or more importantly, the lawyers.
Ø'Changema says no enforcee now, but could change his tune again anytime in the next year... he'll just give word to the IRS to check out some insurance companies in some selective way, ones not playing his tune...
A president that stops enforcing the law can start it up again... anywhere with anybody.
Yes, being from IT I tend to think of the computer grunts first, but the legal and actuarial departments also.
Kevin McCarty seems to be a good guy.
Good thing because tomorrow may rain...
Listening to some Beatles/Hendrix/Cars, etc. as I wend my way through FR
-——could destabilize the market and result in higher premiums for consumers.-——
This is not a real problem.
With the implementation of medical/healthcare wage and price controls for 2014, the insurers have nothing to fear and can renew the policies.
Best way to travel.