It is now being reported that hundreds of thousands of health plans will be cancelled for Americans choosing to buy their own private coverage. Those being cancelled are told, “They fall short of what the Affordable Care Act requires.”
Kaiser Health News reports insurance companies in a number of states including Florida and California will drop coverage on their customers.
In fact, Kaiser Permanente in California has sent notices of cancellation to 160,000 people, about half of its individual business in the state.
Requirements within the Obamacare law stipulate, “Policies sold in the individual market must cover 10 "essential" benefits, such as prescription drugs, mental health treatment and maternity care.”
Whether the individual being insured needs those 10 points or not, that’s the law.
Also, insurance companies cannot reject people with medical problems or charge them higher prices. The policies must also cap consumers' annual expenses at levels lower than many plans sold before the new rules.
It is a plan to drive private insurance companies out of the market, which the White House has denied for years.
Cancellation letters starting last August surprised many since the president promised Americans they would be able to keep their insurance plans if they liked them. But according to The Weekly Standard, 16 million Americans will eventually lose their current plans because of Obamacare.
The individual health insurance market currently comprises about 19 million people. Because of the Obamacare regulations on “grandfathering” the insured’s present plan, about 85 percent of those not grandfathered will be subject to all Obamacare regulations upon their renewal.
Despite numerous studies to the contrary, many people receiving cancellations say it looks like their costs will go up.
One more example of the confusion involves Blue Shield of California. That company sent out 119,000 cancellation notices out in mid-September. That amounts to approximately 60 percent of its business.
Many of those who were not cancelled will see rate increases (about two-thirds).
It now is beginning to appear Obamacare was a political decision and not one invented for “the common man.”
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