Oh, good: Insurance cancellation notices are snowballing

posted at 5:21 pm on October 23, 2013 by Erika Johnsen

This is really news, exactly, because anyone paying attention has known that less choice and higher prices have been on the healthcare docket for awhile now; this is just more of the mounting evidence blowing open one of President Obama’s most well-known and most carelessly delivered guarantees of his signature healthcare overhaul: “If you like your plan, you can keep it.”

It isn’t merely the umbrella of Big Labor that now has cause to complain about that most shallow of promises; individuals assured of their own accord across the country have been getting some unpleasant news in the mail over the past couple of months:

Health plans are sending hundreds of thousands of cancellation letters to people who buy their own coverage, frustrating some consumers who want to keep what they have and forcing others to buy more costly policies. …

An estimated 14 million people purchase their own coverage because they don’t get it through their jobs. Calls to insurers in several states showed that many have sent notices.

Florida Blue, for example, is terminating about 300,000 policies, about 80 percent of its individual policies in the state. Kaiser Permanente in California has sent notices to 160,000 people – about half of its individual business in the state.  Insurer Highmark in Pittsburgh is dropping about 20 percent of its individual market customers, while Independence Blue Cross, the major insurer in Philadelphia, is dropping about 45 percent. …

Blue Shield of California sent roughly 119,000 cancellation notices out in mid-September, about 60 percent of its individual business.  About two-thirds of those policyholders will see rate increases in their new policies, said spokesman Steve Shivinsky.

It’s okay, though, ya’ll; the ObamaCare exchanges are here for you! …You know, if you can access them, and once you accept the fact that your new plan is probably going to be somewhere between a little and a lot more expensive. The big excuses here, as ever, are that A) the new plans will include a lot of sweet benefits and more thorough coverage (whether or not people actually want/need it), and that B) some people will be eligible for federal subsidies that will help to offset the higher prices of their new plans (which willfully glosses over both the economic plight of people not eligible for subsidies as well as exactly where it is that all of the fabulous money for these magical subsidies is going to come).

Health policy expert Bob Laszewski (h/t Weekly Standard) thinks that the number of people getting booted off their current plans is going to amount to about 16 million before all is said and done:

The U.S. individual health insurance market currently totals about 19 million people. Because the Obama administration’s regulations on grandfathering existing plans were so stringent about 85% of those, 16 million, are not grandfathered and must comply with Obamacare at their next renewal. The rules are very complex. For example, if you had an individual plan in March of 2010 when the law was passed and you only increased the deductible from $1,000 to $1,500 in the years since, your plan has lost its grandfather status and it will no longer be available to you when it would have renewed in 2014.

These 16 million people are now receiving letters from their carriers saying they are losing their current coverage and must re-enroll in order to avoid a break in coverage and comply with the new health law’s benefit mandates––the vast majority by January 1. Most of these will be seeing some pretty big rate increases.

Did President Obama and his circle of most trusted advisers repeatedly make that absurd promise because they just didn’t care what they had to do to get the thing passed, or because they legitimately didn’t know the extent of the damages that would result from the monster they’ve created? I’m not sure which one disturbs me more.


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Comment pages: 1 2

Obama – Pharaoh Misanthrope.

VorDaj on October 23, 2013 at 6:49 PM

ObamaCare will not die, it will just mutate.

albill on October 23, 2013 at 6:51 PM

Michelle OBama’s Patient Dumping Scheme

March 2009.

Guess we serfs didn’t figure that she’d dump a million Murcans off their herf cares!

/Impeachment.

Key West Reader on October 23, 2013 at 6:52 PM

Obama – Pharaoh Misanthrope.

VorDaj on October 23, 2013 at 6:49 PM

You are too kind

Key West Reader on October 23, 2013 at 6:54 PM

This was predicted, but people wouldn’t listen. Honestly, WHERE do they get the faith they have in government?

LilyBart on October 23, 2013 at 6:33 PM

Agreed..It is sad..A majority of folks thought they were getting a “Hero”..What the got was a person would could not lead a one car funeral procession..:)

Dire Straits on October 23, 2013 at 6:56 PM

Here are the premiums.

Akzed on October 23, 2013 at 6:58 PM

Agreed..It is sad..A majority of folks thought they were getting a “Hero”..What the got was a person would could not lead a one car funeral procession..:)

Dire Straits on October 23, 2013 at 6:56 PM

You lie.

He’s leading his own way.. Forward! To impeachment… and beyond!

Key West Reader on October 23, 2013 at 6:59 PM

Deductibles are going to be the death knell of this program.

Speaking of programs (stolen from an HA post w/minor mods):
NEWS FLASH – The Obowmao administration will hire 5 million programmers, supervised by Joke Biden, to write one line of code each and finish the project in 5 minutes.
Media says … ‘Ingenious’.
Dear Liar has them all on a leash and I don’t see them breaking the lockstep they’ve perfected over the last SEVEN YEARS with the Gimmedats.

I understand they’ve having a special confab with the directors of ‘THE CODE’ ONLY with the DEMOCRATS … really? I mean REALLY?

Missilengr on October 23, 2013 at 7:03 PM

Here are the premiums.

Akzed on October 23, 2013 at 6:58 PM

Holy Moly

Key West Reader on October 23, 2013 at 7:04 PM

I despise this administration.

locomotivebreath1901 on October 23, 2013 at 7:09 PM

We are now past the point of no return. The arrow has flown and there’s no getting it back now.

If Obamacare Mandate doesn’t get delayed… the pain will sit in immediately and hard.

If Obamacare Mandate does get delayed… that now poses problems for the insurers: They still have to offer insurance to those who did enroll but with no mandate in place there will be nothing to stop the death spiral of adverse selection that will most assuredly follow.

Chaz706 on October 23, 2013 at 7:10 PM

Key West Reader on October 23, 2013 at 6:59 PM

LoLz..I hear you..:)

Dire Straits on October 23, 2013 at 7:11 PM

The only conservative I know who’s been hammering the opportunity here for republicans that Obama has been handing them on a platter, i.e., to redefine what “compassionate” means in our times, is David Horowitz. Obama ISN’T compassionate. He and his policies are CRUEL. It’s Republicans who care about people, the individual. Democrats care about systems and policies and power. It’s all right in front of us.

rrpjr on October 23, 2013 at 7:11 PM

Oh, good: Insurance cancellation notices are snowballing

….the avalanche is coming!

KOOLAID2 on October 23, 2013 at 7:14 PM

Sucks for those people in the short term. Long-term, big picture -Good News. Let It Burn.

Lou Budvis on October 23, 2013 at 7:15 PM

These 16 million people are now receiving letters from their carriers saying they are losing their current coverage …

16 million? Purely anecdotal.

Oxymoron on October 23, 2013 at 7:19 PM

Akzed on October 23, 2013 at 6:58 PM

What a worthless web sight. It says nothing about what the difference is in those plans or is that suppose to be intuitive? what is the deductable or the out of packet max? Worthless, but I guess that is the point.

whbates on October 23, 2013 at 7:29 PM

Anybody here know anything about or belong to Medi-Share, the Christian alternative to insurance?

rrpjr on October 23, 2013 at 7:31 PM

What happened to all the libtard trolls?
I haven’t seen a single one of the on any of these threads for the last 2 days.
I wonder why……

dentarthurdent on October 23, 2013 at 6:14 PM

Because of their various bugwit comments before this scheme really got rolling, this one being my current favorite:

we’re more comfortable with Obama wielding this sort of power because he seems a hell of a lot more effective and responsible with it.

urban elitist on February 8, 2012


Bishop
on October 23, 2013 at 6:22 PM

.
Great archive, for the moment.

listens2glenn on October 23, 2013 at 7:33 PM

Obama the Impaler.

VorDaj on October 23, 2013 at 7:34 PM

And this is WITH the one year delay in the employer mandate. Just imagine what it’s going to be like next fall.

ButterflyDragon on October 23, 2013 at 7:34 PM

some people will be eligible for federal subsidies that will help to offset the higher prices of their new plans (which willfully glosses over both the economic plight of people not eligible for subsidies as well as exactly where it is that all of the fabulous money for these magical subsidies is going to come).

And this does not count deductibles. Add those in and there are going to be some very, very angry people indeed.

Johnnyreb on October 23, 2013 at 7:39 PM

Did President Obama and his circle of most trusted advisers repeatedly make that absurd promise because they just didn’t care what they had to do to get the thing passed, or because they legitimately didn’t know the extent of the damages that would result from the monster they’ve created?

Neither

They knew, and they wanted it to happen

They needed people to experience termination by an insurance company, and ‘rescue’ by the government

Then, they need Obamacare to have glaring flaws that will only be corrected by single payer

Further, Insurance companies losing customers shrinks insurance companies. This also Obama wants. He can make up the dif in contributions from his Silicon valley billionaires

entagor on October 23, 2013 at 7:42 PM

Anybody here know anything about or belong to Medi-Share, the Christian alternative to insurance?

rrpjr on October 23, 2013 at 7:31 PM

2 yr member with Samaritan Ministries, an equivalent effort to MS…count me in as satisfied and they are EXEMPT from KevorkianCare!

hillsoftx on October 23, 2013 at 8:00 PM

KEEP VOTING DEMOCRAT!

Murphy9 on October 23, 2013 at 8:09 PM

Can the federal government be charged with false and deceptive advertising as can private corporations? After all it is selling a product that has been hyped with false assurances — keep your doctor, insurance policy, save money.

The trial attorneys could have afield day. Even have Democrats screaming for tort reform.

Corky Boyd on October 23, 2013 at 8:21 PM

“If you like your PAIN you can keep it.” I can’t believe you guys didn’t hear him right.

AmeriCuda on October 23, 2013 at 8:41 PM

hillsoftx on October 23, 2013 at 8:00 PM

Thanks.

rrpjr on October 23, 2013 at 8:42 PM

Has someone told the pediatricians that their practice now includes twenty-six year olds?

slickwillie2001 on October 23, 2013 at 6:33 PM

It is a sad commentary on our society and economy that this provision is even necessary. If we had a decent economy, and a system where kids could graduate from college without being tens of thousands of dollars in debt, perhaps our 26 year olds wouldn’t still be dependent on their parents.

And what happens if your 26 year old “child” has children of his/her own?

Meezles on October 23, 2013 at 11:58 PM

If Obamacare Mandate does get delayed… that now poses problems for the insurers: They still have to offer insurance to those who did enroll but with no mandate in place there will be nothing to stop the death spiral of adverse selection that will most assuredly follow.

Chaz706 on October 23, 2013 at 7:10 PM

It’s not just a problem for the insurers… it’s a problem for individuals too!

We lost a client recently because they decided to dump all their employees to the exchanges with a stipend to help offset the cost. I have no idea what will happen if the exchanges aren’t running to purchase insurance, with the stipend geared towards the exchanges! It’s too late to rework the benefits to go back to traditional insurance because the termination notifications already went out the us and the TPA. If I were an employee, I would be really ticked with this employer and the current state of the exchanges!

dominigan on October 24, 2013 at 5:02 AM

Can the federal government be charged with false and deceptive advertising as can private corporations? After all it is selling a product that has been hyped with false assurances — keep your doctor, insurance policy, save money.

The trial attorneys could have afield day. Even have Democrats screaming for tort reform.

Corky Boyd on October 23, 2013 at 8:21 PM

LOL! I hadn’t considered your last point! Deep down, everyone is a conservative once it starts to affect their livelihoods!

dominigan on October 24, 2013 at 5:04 AM

They were utterly ignorant as to what would happen. DC has been clueless about the fall out on their precious programs.

Quartermaster on October 24, 2013 at 6:31 AM

It’s okay, though, ya’ll

It’s NOT okay: you + all = y’all.

Advancing the “broken windows” theory of spelling improvement, one window at a time.

AesopFan on October 24, 2013 at 11:59 PM

Comment pages: 1 2