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ACA Fail Fractal
Obamacare Cancellations, Round Two

The second wave of Obamacare insurance cancellations is about to break. Vox reports on the impending demise of so-called fixed-benefit insurance, which pays out a fixed sum to patients regardless of how much the procedures cost or where they get them. The Obama Administration now wants to get rid of them—even if you like them. More:

It’s worth being clear that even now a fixed-benefit plan doesn’t satisfy the individual mandate. The new rule would mainly affect people who had chosen to pay the individual mandate, or who were exempt from the mandate, and who bought a fixed-benefit plan as a stopgap. The Obama administration is saying that they can’t do that unless they also buy a more comprehensive plan. […]

The Center for Medicare and Medicaid Services proposed in late March barring the purchase of fixed-benefit health plans as stand-alone coverage. Instead, the Obama administration plans to require fixed-benefit plan enrollees to show proof that they have a full medical plan—and are only using the indemnity product as a supplement.

We don’t yet know exactly how many people will be affected by these cancellations. It may be too few to cause another PR disaster on the scale of the one that followed the previous round of cancellations.

But either way, this should serve as a reminder that Obamacare is still far from fully implemented. A lot of things must fall into place before we get a good sense of the total impact of the law. It’s too early to declare the ACA either a success or a failure: Count no man happy until he’s dead; call no law good until it’s in full force.

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  • stanbrown

    Obama is like a new football coach who’s had to forfeit the first two games because he forgot to order uniforms and equipment. Now, he’s celebrating because he’s managed to get his team to huddle up, call a play, break the huddle and line up in the right formation. They still can’t execute a play properly, but obviously, any coach who can get his players to line up in a formation is destined to win the championship, right?!

    Coach Obama might be advised to wait ’til he actually wins a game before he again claims he’s won the Super Bowl.

  • Brian H

    As someone working for a company with a July-June insurance schedule, whose non-ACA policy was cancelled days before the Administration announced the employer-mandated delay, I can tell from my experience over the year with an actual ACA-compliant business-group policy that folks haven’t seen anything yet. Once the bulk of Americans, the 70% who get their insurance through their jobs, have to deal with this — the cancellation/replacement cycle is easier than with independent policies, but the cost-benefit ratio seems to actually be worse, given what we have now versus what we’ve lost — THEN it’s really going to hit the fan…

  • Jagneel

    Keep dreaming. ACA, just like Medicare, is here to stay.
    None of the supposed Kock-sponsored horror story stands up to scrutiny.
    Any one in search of an alternative to ACA will end up finding something that looks like ACA.

    • Dan

      clearly something to be very proud of

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