On Wednesday, Secretary of Health and Human Services Kathleen Sebelius testified before Congress about the continuing issues with the rollout of Obamacares health insurance exchanges. Hold me accountable for the debacle, said Sebelius. Im responsible. I attended the hearing, and I was struck by the scope, scale, and depth of the health laws problems, problems that far exceed any one political appointee. But Obamacares disruption of the existing health insurance marketa disruption codified in law, and known to the administrationis only just beginning. And its far broader than recent media coverage has implied. [...]
Section 1251 of the Affordable Care Act contains whats called a grandfather provision that, in theory, allows people to keep their existing plans if they like them. But subsequent regulations from the Obama administration interpreted that provision so narrowly as to prevent most plans from gaining this protection.
The Departments mid-range estimate is that 66 percent of small employer plans and 45 percent of large employer plans will relinquish their grandfather status by the end of 2013, wrote the administration on page 34552. All in all, more than half of employer-sponsored plans will lose their grandfather status and get canceled. According to the Congressional Budget Office, 156 million Americansmore than half the populationwas covered by employer-sponsored insurance in 2013.
Another 25 million people, according to the CBO, have nongroup and other forms of insurance; that is to say, they participate in the market for individually-purchased insurance. In this market, the administration projected that 40 to 67 percent of individually-purchased plans would lose their Obamacare-sanctioned grandfather status and get canceled, solely due to the fact that there is a high turnover of participants and insurance arrangements in this market. (Plans purchased after March 23, 2010 do not benefit from the grandfather clause.) The real turnover rate would be higher, because plans can lose their grandfather status for a number of other reasons.
How many people are exposed to these problems? 60 percent of Americans have private-sector health insuranceprecisely the number that Jay Carney dismissed. As to the number of people facing cancellations, 51 percent of the employer-based market plus 53.5 percent of the non-group market (the middle of the administrations range) amounts to 93 million Americans.
- See more at:
Weasel Zippers | Scouring the bowels of the internet | Weasel Zippers