President Obama says he can “fix” the millions of canceled health insurance plans with an administrative change. He’s claiming more executive power – power for himself – than the Constitution allows, and is playing fast and loose with the truth.
The culprit behind the cancellations is not an administrative regulation, as he claims. It’s Section 2702 of the Affordable Care Act. It says all plans sold in the individual market or small-group market on Jan. 1, 2014, or later must include the Essential Benefits Package.
This means 10 categories of health coverage the Washington “experts” deem essential, such as maternity care even if you’re 50 years old. Plans are being canceled because they don’t have all 10.
Only Congress can dispense with the deadline. Last Friday, the House of Representatives passed a bill to do that.(Insurers and insurance commissioners in several states have said the “fix” is too late to retool by Jan. 1.) Nevertheless, the House bill is a legal attempt to stop the mass cancellations.
Amazingly, our arrogant president says he will veto that bill if it reaches his desk because it would allow insurers to sell the noncompliant policies to new customers as well as old. The real reason is that Obama wants to rule by edict.
This particular edict could put taxpayers on the hook for a hefty amount. The American Academy of Actuaries warned that the fix is likely to cause healthy people to stick with their old plans, leaving the sickest in the new exchanges. That will clobber exchange insurers.