ObamaCare premiums more expensive than the old premiums even with subsidies says…the Obama administration
posted at 8:41 am on November 15, 2013 by Steve Eggleston
Remember the claims from our friends on the Left, when the massive raw increases in the ObamaCare-compliant insurance premiums were exposed, that the subsidies from the taxpayers would mean the out-of-pocket expenses for ObamaCare insurance premiums would more than cover said raw increases for the average person? That’s just been blown out of the water, as the Daily Mail reports (H/T – John Ekdahl):
The Obama administration has directly conceded for the first time that ‘in many cases,’ health insurance plans offered through government exchanges are more expensive than plans consumers bought before the Affordable Care Act became law – even when government subsidies are figured in.
In a letter to state insurance commissioners, Center for Consumer Information and Insurance Oversight director Gary Cohen wrote on Thursday that one reason for the new Obamacare measures the president announced Thursday is that millions of consumers receiving cancellation letters from their insurers are learning the Affordable Care Act options are in fact less affordable.
‘Although affected individuals and small businesses may access quality health insurance coverage through the new Health Insurance Marketplaces,’ Cohen wrote, ‘in many cases with federal subsidies, some of them are finding that such coverage would be more expensive than their current coverage, and thus they may [be] dissuaded from immediately transitioning to such coverage.’
That letter, which begs the states to go along with this scheme, contains the conditions of the implementation of the 1-year administrative federal delay in the forced cancellation of existing individual and small-group policies, including not only a limitation of the exemption to policies that were in effect as of October 1, but a notice mailed out to all those whose plans either were or would have been cancelled that includes mentions of:
(1) any changes in the options that are available to them; (2) which of the specified market reforms would not be reflected in any coverage that continues; (3) their potential right to enroll in a qualified health plan offered through a Health Insurance Marketplace and possible qualify for financial assistance; (4) how to access such coverage through a Marketplace; and (5) their right to enroll in health insurance coverage outside of a Marketplace that complies with the specified market reforms.
AP already noted this isn’t flying too well with either the insurance companies expected to clean up the mess the Obama administration created or the states who need to let the blame be shifted back to the insurance companies.