Obama Lifts Health Mandate for Those With Canceled Plans

[B2G]

Obama Lifts Health Mandate for Those With Canceled Plans
Source: Bloomberg

Americans whose health plans are being canceled because their coverage doesn’t meet Obamacare rules will be exempt from the mandate that they carry insurance, under a change announced by the Obama administration.

Officials estimated the change will affect fewer than 500,000 people as a Dec. 23 deadline looms to purchase health policies to be eligible for coverage beginning Jan. 1. People losing coverage also will be eligible to buy high-deductible “catastrophic” insurance the law usually limits to those younger than age 30.

Insurers warned that the new exemptions, which would last a year and potentially longer for consumers granted hardship exceptions, risk destabilizing the new marketplaces if younger, healthier people who now carry cheap policies opt out of buying replacement coverage.

“This latest rule change could cause significant instability in the marketplace and lead to further confusion and disruption for consumers,” Karen Ignagni, the president of America’s Health Insurance Plans, the industry’s Washington lobby group, said in an e-mail from a spokesman.



Read more: http://www.bloomberg.com/news/2013-12-20/obama-aides-say-more-to-gain-coverage-under-aca-than-canceled.html

[progressoid]

1. Why?

Doesn't that run counter to the whole mandate idea?

[Vox Moi]

2. Do I have this right?

The ACA set standards for insurance policies.
Subsequent to the passage of the ACA, insurance companies change the structure of policies.
When the ACA standards become enforceable the substandard policies are dropped.

- The insurance companies were aware that the substandard policies would become moot under ACA and sold them anyway.

So, the cancelled policies are Obama's fault and the ACA needs adjustment, except that the insurance companies say that tweaking the ACA is disruptive.

[B2G]

3. These substandard plans don't even exist anymore

So where are they supposed to buy them? Why is it a hardship for those whose policies were cancelled versus those who never had them in the first place? Can't they *all* shop on the exchange?

Isn't this unequal treatment under the law? Some are mandated but others aren't? Some have to pay a tax and others don't?

My god, what is the Obama admin doing? HOW can they do this?

[theaocp]

4. My estimation is

that they're just weak and it will come and bite them in the ass. Conservatives smell blood in the water.

[B2G]

5. Well it does appear to be bleeding out

What the bloody hell?

[FarCenter]

6. It's in effect telling people that it is OK to get canceled and then go without insurance.

OTOH, if you didn't have insurance, and then don't buy insurance, you are still subject to the penalty.