With millions of consumers getting cancellation notices for their current health plans, President Obama announced Thursday that he will encourage insurance companies to continue offering their customers the same health plans next year.
“This fix won’t solve every problem for every person,” Obama said, saying he would consider legislative action to go further. But he appeared to rule out the sort of legislation that House Republicans are pushing, which would allow insurance companies to continue selling new policies, indefinitely, that would not comply with the law’s new consumer standards.
“I will not accept” legislation that would “drag us back to a broken system,” Obama said.
He and his supporters have no idea what they are doing.
- The insurance companies will be “encouraged” to break the law? They cannot legally still offer those plans.
- The people who will keep their old plans are those who are at low risk of needing expensive health care. Their premiums were to pay for those at high risk. Taking them out of the pool will mean the premiums for those remaining will have to go up.
- The insurance companies spent the last few years working to estimate the risks, set prices based on those risks, and restructure their organizations to work with the new mandates. It will take a similar amount of time to revert back and support the system they were forced to abandon.
- Restructuring of the insurance companies resulting in employees going to different jobs within the company or being laid off. Those changes cannot be undone in a short period of time. A lot of that expertise has been essentially vaporized by Obamacare.
Not only did the Democrats have no constitutional authority to inflict this upon the people but they had no idea what they were doing. They believe changing the laws of economics is as simple as changing the laws of the nation. The reality is that the laws of economics are as immutable as the laws of physics. To believe that Obamacare could make health insurance cheaper and more accessible to everyone is to believe perpetual motion machines are possible.
There will probably always be simple minded people that believe in perpetual motion and we have present day proof of that in those that voted for and support Obamacare.
Update: An insurance industry insider just told me: “Your post is exactly what we were just talking about. The magnitude is staggering.”