Fix it, or else we walk…to the Republican side of the aisle
by Heidi
HotAir
Amazing stuff via
Mediaite. The “Keep Your Plan Act” is Fred Upton’s bill, which Jay Carney spent a few minutes
attacking at today’s press briefing because it would make canceled plans available to
all consumers, not just the ones who’d been enrolled in those plans before. That would be a
disaster for the insurance industry.
Healthy people would flee the new, more expensive plans for the resurrected cheaper ones, leaving no one in the new risk pool except sick people with very expensive treatments. That means either heavy losses for insurers, steep premium hikes next year to make up the difference, or some sort of federal bailout (congrats, red-state Democrats!) — or maybe a little of all three. You’ll have the same problem, though, albeit to a lesser extent, even if Upton’s bill is amended so that it applies only to people who’d been enrolled in a particular plan before it was cancelled. You can’t run a two-tiered healthy/sick insurance system. If the risk pools aren’t merged, replete with higher rates for the former, you can’t pay for the latter.
I understand why the GOP would back Upton’s bill. It’s a slam dunk politically, grinding Obama’s face in the consequences of his lie. This is the Democrats’ mess; Reid and the Senate can/will kill the bill if they like. I can’t understand why House Democrats, aware of the adverse selection problem that’s lurking here — and the political humiliation for the White House — would sign on,
unless they’ve already reached a point of such pure terror over the “if you like your plan” backlash that they’re willing to kneecap ObamaCare six weeks out of the gate. Did they … not understand that millions of people were going to face cancellations and higher premiums under the law’s redistributive scheme? Of course they did.
Bookmarks