Sunday, January 12, 2014

Second Wave of Health-Insurance Cancellations Begins

WaPo reports:

When millions of health-insurance plans were canceled last fall, the Obama administration tried to be reassuring, saying the terminations affected only the small minority of Americans who bought individual policies.

But according to industry analysts, insurers and state regulators, the disruption will be far greater, potentially affecting millions of people who receive insurance through small employers by the end of 2014.

While some cancellation notices already have gone out, insurers say the bulk of the letters will be sent in October, shortly before the next open-enrollment period begins. The timing — right before the midterm elections — could be difficult for Democrats who are already fending off Republican attacks about the Affordable Care Act and its troubled rollout.

Some of the small-business cancellations are occurring because the policies don’t meet the law’s basic coverage requirements. But many are related only indirectly to the law; insurers are trying to move customers to new plans designed to offset the financial and administrative risks associated with the health-care overhaul. As part of that, they are consolidating their plan offerings to maximize profits and streamline how they manage them.

“If they do it one way, the word canceled gets attached to it. If they do it another way, they say they are amending the policy. It sounds more gentle but it’s the same thing,” said Gary Claxton, an expert in private insurance at the Kaiser Family Foundation. “The basic point is, for many people in the small-group market at some point soon their coverage is going to change.”[...]

An estimated 18 million to 24 million people in the United States have insurance through employers with fewer than 50 workers, and about 40 million have coverage through firms with fewer than 100 workers. The Department of Health and Human Services estimated in 2010 that up to 80 percent of small-group plans, defined as having fewer than 100 workers, could be discontinued by the end of 2013. But many small employers bought themselves extra time by renewing policies early through the end of 2014.


  1. Did you miss the news? The rotten, slimy Dems have pushed back the deadline UNTIL AFTER THE 2014 ELECTIONS!!!!!

  2. We must always keep in mind the ostensible reason(s) for President's Obama's self-styled reform of healthcare, and judge his signature Act by comparing outcomes with expectations. 1) "Bend down the healthcare spending curve" has produced ... ACA new spending of $1.3-2.7 trillion(with a "t" not a "b"); 2) "eliminate the uninsured" has produced ... 7:1 ratio of newly UNinsured to newly insured; 3) "affordable health care" (admittedly changed to health insurance by BHO) ... has produced increases in insurance premiums as high as 179% (Nevada) as well as a host of new or increased taxes; and 4) PPAH Care Act has caused 70% of the doctors in California to refuse Obamacare-insured patients because they cannot afford to take them on.
    You judge for yourself.
    And when you want to understand WHY this is happening, read "The Cancer In Healthcare" (

  3. I'm guessing the primary intent of Obamacare is to overcharge the working people (the producers) so subsidized health care can be given to the non-producers (moochers). Could there be a racial twist to this plan? Hmmmmm................

  4. Interesting perspective about how Obamacare effects us all.

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