Skip to comments.Obamacare insurance cancellations in Alabama: Who got left holding the hot potato?
Posted on 11/21/2013 8:04:00 PM PST by 2ndDivisionVet
Last week, President Obama's announcement offering to allow one-year extensions on health insurance policies that don't meet Affordable Care Act standards was a political volley in the face of relentless pressure, some observed.
Health insurers "may choose" to continue coverage that would otherwise be terminated, a letter to state insurance commissioners declared.
Your serve insurers.
On Wednesday, Blue Cross and Blue Shield of Alabama lobbed it back.
No, we don't choose to reinstate the policies set to be canceled. It had sent out 87,000 letters of cancellation with offers, for the majority, of an ACA-approved policy at a higher cost.
It wasn't exactly a shocker, said Michael Morrisey, director of the University of Alabama at Birmingham Lister Hill Center for Health Policy.
"It is really not at all surprising because insurers don't have a lot of options. They have built premiums on the assumption that the Affordable Care Act would roll out the way the law was supposed to," Morrisey said....
(Excerpt) Read more at blog.al.com ...
0bama: “No, it’s the evil insurance companies’ fault.”
“What a maroon.” -Bugs Bunny
Rule of law.
“Insurers don’t have a lot of options.....”
It is correct that they do not have the luxury of ignoring the law or re-writing the law to their likes, as apparently obumbler can.
However, there is more to it than this.
The insurance companies were promised the pot of gold at the end of the rainbow. The policies as now written were promised to them in return for their support of obumbler care.
Think about it: Millions and millions of policies written with padded charges that would be paid for by every single policy holder, with a $12,000 or so deductible.
Think about that. Every policy holder pays through the nose for options they do not need and then end up paying for their medical care out of pocket.
Very few people pay more than $12,000 annually for medical care, so the insurance companies would collect from all and pay only a few.
Only those with a truly catastrophic medical problem would collect, and then only after they paid their $12,000. This would be for conditions similar to cancer, severe accidents, etc.
There are of course older people who have big medical bills, but they are going to be rationed.
Since the over 65 population is 13.7%, obumbler care is still a good deal for the insurance industry provided they can get everyone to sign up.
So bottom line:
Do not expect a second letter from your insurance company r telling you that you will have your old insurance policy reinstated. It ain’t gonna happen.
Be prepared, MSNBCslib attack dog hosts like Sharpton and Schultz met at WH for a PR attack strategy session. Juan Williams ratted on them. Reported on Kelly file tonight,
The issue for all of 2014....is the disposable income that doesn’t come into normal spending.
A guy goes to the emergency room in March, and that visit is $6,000. Well, his deductible is $6,000....so the entire burden of this one visit comes to him, not the insurance company. What does the guy do?
He’ll charge it to a credit card, or take a loan from the bank.
That new car for 2014 that he was going to buy? No, no car for 2014. That $3,000 trip to Aruba with wife? No, no Aruba trip. That $1,500 for football and baseball tickets spent over the year? No, no attendance at games. That $500 for the new laptop? No, just keep the old laptop for another year.
Across the nation for 2014....less money will appear in the hands of car dealers, Wal-Mart, travel companies, hotels, and house renovation folks. Most will cut back and recession will be talked about, but this doesn’t really fit recession. It’s more about money that got grabbed and pushed toward other expenditures. We started a trend, and there’s no way of predicting where it goes.
Health insurers "may choose" to continue coverage that would otherwise be terminated, a letter to state insurance commissioners declared. Your serve insurers. On Wednesday, Blue Cross and Blue Shield of Alabama lobbed it back. No, we don't choose to reinstate the policies set to be canceled. It had sent out 87,000 letters of cancellation with offers, for the majority, of an ACA-approved policy at a higher cost.