Indeed, one reason not to jump on the GOP train of “solutions” to Obamacare’s current woes…is that the cancellation letters aren’t a problem. As Matthew Yglesias noted in a column for Slate, “it never made financial sense for the insurer to actually pay up in the case of major illness.” Most of the “plans” cancelled by insurers were junk—plans that gave peace of mind to consumers, but wouldn’t help them in the case of an emergency. They shouldn’t have been sold in the first place. And indeed, as Obama noted, part of the reason for health-care reform was that insurers were refusing to cover care for the millions of Americans who purchased these plans. Under the Affordable Care Act, this can no longer happen.
Five million Americans received cancellation notices. They account for a third of the roughly 15 million people in the individual insurance market, or just 1.6 percent of all Americans….
Yes, there’s no fun in receiving a cancellation notice, and yes, folks will have to pay more for coverage in the exchanges (though, it’s important to note that many are eligible for subsidies, and it’s always possible to expand subsidies for those who aren’t). But the truth is that these cancellations are a small price to pay for an insurance system that actually provides for people who are sick or injured, and doesn’t saddle them with tens of thousands of dollars in debt.
No, President Obama shouldn’t dismiss the anger of this small minority, but we also shouldn’t pretend that the current situation is worst than the past. It isn’t.
Do you see how Orwellian this is? He actually put the word “plan” in quotation marks. It’s like Michael Cohen saying the canceled plans could “barely qualify as insurance.”
Question: Do these people think fire insurance policies are actually “policies” and that they barely qualify as insurance? I mean, most homeowners don’t get any money out of those things. They just cover catastrophic outcomes, like your house catching on fire.
UPDATE: Actually in fairness, I think there are two things going on here. Cohen is quite outrageously saying that a plan with a high deductible etc. barely qualifies as insurance. But Bouie and Yglesias are referring (in part) to “rescissions,” in which an insurer apparently drops coverage when you get sick. So their claim is more defensible.