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March 3, 2014, "New O-Care delay to help midterm Dems," The Hill, by Elise Viebeck
"The Obama administration is set to announce another major delay in
implementing the Affordable Care Act, easing election pressure on
Democrats.
As early as this week, according to two sources, the
White House will announce a new directive allowing insurers to continue
offering health plans that do not meet ObamaCare’s minimum coverage
requirements.
Prolonging the “keep your plan” fix will avoid another wave of health policy cancellations otherwise expected this fall.
The cancellations would have created a firestorm for Democratic candidates in the last, crucial weeks before Election Day.
The White House is intent on protecting its allies in the Senate, where Democrats face a battle to keep control of the chamber.
“I
don’t see how they could have a bunch of these announcements going out
in September,” one consultant in the health insurance industry said.
“Not when they’re trying to defend the Senate and keep their losses at a
minimum in the House. This is not something to have out there right
before the election.”
The White House and the Department of Health and Human Services on Monday both said they had no updates to announce. Late
last year, the administration was grappling with the beleaguered
HealthCare.gov and millions of canceled health plans in the individual
market....
Obama
subsequently called on states and the insurance industry to allow
people to keep their existing plans for an additional year. While many
states agreed, it left the administration with a dilemma.
A
one-year moratorium pushed the deadline beyond the midterm election, but
insurers must send out cancellation notices 90 days in advance. That
would mean notices in the mail by Oct. 1, five weeks before voters go to
the polls.
The administration’s decision to pursue another
extension was confirmed by insurance sources who predicted a public
announcement would be “imminent.” It is unclear how long the extension
will be, though one source believed it could last to the end of Obama’s
second term, and perhaps beyond....
Allowing
insurers to continue offering noncompliant health plans for several
years would substantially alter the health insurance landscape under
ObamaCare.
It would also undercut one rationale for the healthcare reform law.
Under
the Affordable Care Act, health plans are required to offer 10 medical
benefits that the Obama administration deems essential. Some of
the services are popular, such as prescription drug coverage, but
others, such as maternity and pediatric care, have been criticized as
expensive as well as being unnecessary for many policyholders, such as
older people.
Nonetheless, the White House has consistently argued
its requirements improve health insurance standards and shield
consumers from unexpected costs associated with bare-bones policies.
“There
are a number of Americans, fewer than 5 percent of Americans, who’ve
got cut-rate plans that don’t offer real financial protection in the
event of a serious illness or an accident,” Obama said in Boston in
October.
“Remember, before the Affordable Care Act, these
bad-apple insurers had free rein every single year to limit the care
that you received, or use minor preexisting conditions to jack up your
premiums or bill you into bankruptcy. So a lot of people thought they
were buying coverage, and it turned out not to be so good.”
The
new standards have also created a political mess for the White House by
forcing insurance companies to cancel policies that do not comply.
The
rush of cancellation letters last fall forced Obama to acknowledge that
he had been wrong to promise that Americans could keep their plans
under the reform. The administration later said that people with
canceled plans could buy catastrophic policies once intended mainly for
young people.
While the storm has quieted since the fall,
Republicans are eager to note that many vulnerable Democrats also
promised before ObamaCare passed that consumers could keep their plans.
“If
you like the insurance that you have, you’ll be able to keep it,” Sen.
Mary Landrieu (D-La.) said on MSNBC’s “Hardball” in 2009. Landrieu,
a GOP target in her 2014 election, has since proposed a bill that would
allow people in the individual market to keep their current policies as
long as they continue to pay their premiums. Other vulnerable Senate
Democrats back the legislation.
“When we passed the Affordable
Care Act, we did so with the intention that if you liked your health
plan, you could keep it,” Landrieu said in November. “A promise was
made, and this legislation will ensure that this promise is kept.”
Health
insurers are meeting in Washington, D.C., this week for two major
conferences hosted by their trade group, America’s Health Insurance
Plans.
Several sources said they had heard chatter about an
extension but that the administration had not made efforts to discuss
the possibility with industry officials.
“From a political
standpoint, that’s expected,” said one source of the silence. “Nobody is
surprised. It’s not like it’s our first time around.""...via Mark Levin
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