Why are individual plans being cancelled?

Let RobertW say the Shibboleth then....

Thanks. I am sincere in asking these questions. I'm also pissed that my insurance plan is being cancelled. But I am trying to understand and give the administration the benefit of the doubt.

Your analysis sounds about the most reasonable/likely story. At 200 gazillion pages I have no way to know what the law actually says. I could ask my congressman but I am sure most members of congress have not read the law either.

Here is my final, uneducated analysis:

1) The administration wanted as many people as possible off individual plans and onto the Exchanges. Whether their motivations were (a) political or (b) humanitarian, as some here maintain, it is impossible to tell. I suspect that they came to the conclusion that this had to happen in order for ObamaCare to have any chance of success economically.

2) Insurance companies are happy to take the opportunity to cancel unprofitable contracts (as any business would). The insurance company representative told me my plan was being cancelled due to ObamaCare. But that still doesn't tell me whether they are being forced to or are choosing to. I suspect the representative doesn't have the inside information either.

3) The administration knew this was coming up to three years ago. Whether it was due to (a) deliberate planning by the administration or (b) the machinations of the insurance companies, is also impossible to tell. However since the administration let their friends and supporters opt out of ObamaCare, I'm leaning towards (a).

Does this sound about right? Want to add anything to this?

People go to the Exchanges to buy individual plans from private insurance companies? What is the issue here?

1) I don't think they wanted people off of individual plans at all. They created exchanges to allow people previously denied individual coverage by the insurance companies (raises hand) the opportunity to purchase insurance. The exchanges also gave small businesses an opportunity (and requirement) to provide insurance to their employees when it was prohibitively expensive to do so beforehand.

2) I vote that they are choosing to. They aren't dumb, just greedy.

3) I'm leaning towards b), but then I don't see the delay of private insurers such as unions (and, believe me, I am NOT a fan of unions!) and businesses in the same light you do. Don't forget, the insurance industry has a very powerful lobby as well. THEY were the ones who demanded the individual mandate in the ACA.

Not to sound like max, but are you a Fox News listener by any chance?

I am still waiting to hear where RobertW thinks Obama was born?

Because if these new plans were bought only by people who were too sick to qualify for coverage before, the policies would be too expensive for anyone to afford.

They need to force everyone to join the new policies so that they can broaden out the risk pool.



Keep in mind that you are getting something big that you didn't have before: the end of rescissions.

Previously there was always the chance that once you got sick and really needed your policy, your insurance company would just cancel the policy and let you die. Now that can't happen.

My old plan was traditional insurance where I could see any doctor anywhere with no restrictions. The best I could get on the exchange was a PPO where I have to go within a network if I want full coverage.

My old plan had an out of pocket maximum of $250 per year. The best plan I could get on the exchange has an out of pocket maximum of $5,100 per year.

I'm not complaining. I'm very happy about the end of rescissions. But I do wish the Democrats would stop spinning lie after lie after lie about Obamacare. It won't hurt them to just tell the truth for once.

That's not the answer. That's the latest lie the Democrats spun to cover up the answer.

The answer is: Because they need to funnel lots of people into the new plans in order to broaden out the risk pool. Otherwise plans on the exchange would be too expensive for anyone to afford.

There could be a whole variety of reasons. However, my guess (and this is a guess) is it is a combination of both. It is most likely too expensive for the insurace company to continue the plan with you and your situation while complying with the new obamaplan rules. I'd bet the only way for this company to stay in business with the new requirements is to up the price of your policy so much, it would be unlikely you would sign on.

Now many are saying I doubt Obama's policy could be more expensive and less coverage, but that is what many are claiming. It does seem to go against the whole idea that your policy did not meet the minimum requirements and thus was canceled - at least on the surface.

However, some things that you must carry with obama care may not apply to you -so you never carried this coverage on your current policy. Some examples: birth control, maternity care, mental health coverage - some previous insurance companies may not have covered that - you didn't need it or want it so you didn't miss it. Now they must cover it or else they will not meet minimum requirements.

Here is an interesting article I read today - that they answer some of your questions.

http://www.nytimes.com/2013/12/14/nyregion/with-affordable-care-act-canceled-policies-for-new-york-professionals.html?_r=0

Just a couple of highlights -

"But while those policies, by and large, had been canceled because they did not meet the law’s requirements for minimum coverage, many of the New York policies being canceled meet and often exceed the standards, brokers say. The rationale for disqualifying those policies, said Larry Levitt, a health policy expert at the Kaiser Family Foundation, was to prevent associations from selling insurance to healthy members who are needed to keep the new health exchanges financially viable.

Siphoning those people, Mr. Levitt said, would leave the pool of health exchange customers “smaller and disproportionately sicker,” and would drive up rates.

Roy Lyons, managing director of Marsh U.S. Consumer, an insurance brokerage, said he had heard complaints from physicians, lawyers, pharmacists and optometrists. “At first they think it’s the bar association making the decision or the insurance company doing it,” Mr. Lyons said. “We have to explain that this is the Affordable Care Act; that’s what was put into law. Once they understand, they’re less emotional, but they’re not happy with it.”

Somewhat better plans on the menu for 2015 as compared to 2014 (for my area at least).

In 2014, there were no Platinum PPOs available, and the best Gold PPO had an out of pocket maximum of $5,100 per year.

For 2015, the best Gold PPO has an out of pocket maximum of $2,500 per year, and there is a Platinum PPO with an out of pocket maximum of $1,000 per year.

The reply you got was suspect. My excellent policy was cancelled as well. Under the premise of lower premiums. Laughable. We have a huge deductible first coverage. ACA only means don't get sick. Or you have a big bill to pay. Poor people will not pay the deductible after treatment.

Jpb are you not able to answer without sounding prejucicial. Ignorant question. Next.

Forgive me, but I am skeptical. Can you be a little more specific?

Was your excellent policy through work? If it was, then that would be the decision of your employer and blaming ACA is rather silly.

What was the reason that your "excellent" policy was cancelled? Most of the plans that were canceled were cancelled because the deductibles were too high (exactly the opposite of what you are implying.

Your point about "poor people" doesn't make sense. How do you think "poor people" pay for medical treatment now?

Has there been any sort of study that establishes how many of the plans that were canceled actually had high deductibles?

I had a $250/year out of pocket maximum before Obamacare, and I could get care anywhere without needing to worry about staying within a network.

Now the best out of pocket maximum I can get is $1000/year, and I have to stay within a PPO in order to be fully covered.

I'm not complaining. I like the end of rescissions, and wouldn't go back even if I could, but the Obama Administration has been a bit careless with their claims and justifications.