Tuesday, November 26, 2013
Hey, Obamacare supporters, be careful what you wish for, you just might get it...
By Jim Angle
Almost 80 million people with employer health plans could find their coverage canceled because they are not compliant with ObamaCare, several experts predicted.
Their losses would be in addition to the millions who found their individual coverage cancelled for the same reason.
Stan Veuger of the American Enterprise Institute said that in addition to the individual cancellations, "at least half the people on employer plans would by 2014 start losing plans as well." There are approximately 157 million employer health care policy holders.
Avik Roy of the Manhattan Institute added, "the administration estimated that approximately 78 million Americans with employer sponsored insurance would lose their existing coverage due to the Affordable Care Act."
Last week, an analysis by the American Enterprise Institute, a conservative think tank, showed the administration anticipates half to two-thirds of small businesses would have policies canceled or be compelled to send workers onto the ObamaCare exchanges. They predicted up to 100 million small and large business policies could be canceled next year.
According to projections the administration itself issued back in July 2010, it was clear officials knew the impact of ObamaCare three years ago.
In fact, according to the Federal Register, its mid-range estimate was that by the end of 2014, 76 percent of small group plans would be cancelled, along with 55 percent of large employer plans.
The reason behind the losses is that current plans don't meet the requirements of ObamaCare, which dictate that each plan must cover a list of essential benefits, whether people want them or not.
"Things like maternity care or acupuncture or extensive drug coverage," said Veuger. "And so now the law is going to force them to buy policies that they could have gotten in the past if they wanted to but they chose not to."
Some plans already have been canceled and employers are getting sticker shock at the new, higher prices under ObamaCare.
One of them is David Allen, president of a company bearing his name in Boulder, Colorado. He told a Congressional hearing recently that his carrier discontinued his company policy because it wasn't compliant with ObamaCare.
"It does not meet the minimum standards as stipulated under the law. Due to this one change," he said, "our premiums are now scheduled to increase by 52.3 percent in January 2014."
Roy said that is not unusual. "The old plans that are being cancelled are meaningfully cheaper than the new plans that are ObamaCare compliant."
A new wave of cancellations and sticker shock will emerge just before next year's elections.
"They're going to start doing that in the summer or early fall but certainly before the midterm elections," said Veuger.