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Tuesday, October 29th 2013

Obamacare Is Leading To Canceled Insurance Plans

Across Fox News and the internet are stories of individuals having their insurance plans canceled or not offered for renewal as a consequence of Obamacare. In the place of their previous plans they are being offered more expensive health insurance options.

This despite President Obama’s promise.

Let’s just get to it, that promise by the President was stupid because the Affordable Care Act was designed to basically costs people with bare plans, with marginal benefits specifically to lose their insurance.

Forbes is running a composite piece of stories out of the AP and Kaiser Health News and others, comparing how many plans have been canceled versus how many people have been able to sign up for new plans in the exchanges.

Needless to say the headline reads: “More Americans In 3 States Have Had Their Insurance Canceled Under ObamaCare Than Have Filed An Exchange Account In All 50″

Technically true.

But Sarah Kiff over at Wonkblog explains why this is happening and why this was actually a planned consequence of the Affordable Care Act.

Some — or maybe even most — of the plans offered on the individual insurance market right now don’t meet certain requirements in the health-care law. They may not offer preventive care without co-payment, for example, or leave out coverage of maternity care, one of the health-care law’s 10 essential benefits.

And insurances simply aren’t grandfathering in these plans as their underwriting changes. So they’re having to cancel them because they don’t meat the requirements under the law. And people are losing their plans.

The stupid thing isn’t necessarily that this is happening. If you’re a proponent of the Affordable Care Act you’ll see the more expensive plans people may have to buy as a necessary thing for the success. If you’re an opponent this doesn’t change your opposition.

What’s stupid, and should be universally agreed as such, is the fact that the administration pretended like this wasn’t going to happen. Including, most unforgivably, the president himself.