WASHINGTON – His personal and political credibility on the line, President Barack Obama reversed course Thursday and said millions of Americans should be allowed to renew individual coverage plans now ticketed for cancellation under the health-care law that bears his name and is likely to be at the heart of the 2014 elections.
The immediate effect on consumers was unclear, though industry spokesmen and state insurance commissioners swiftly warned that higher prices could result from the president’s rapid turnaround.
Under pressure from consumers as well as congressional Democrats, Obama said the administration no longer would require insurance companies to jettison current individual and small group plans that fall short of the minimum coverage standards under the law, effectively shifting responsibility for cancellations to the industry itself. The change would be good for just one year, though senior administration officials said it could be extended if problems persist.
Speaking of the millions of people whose coverage is being scrapped, Obama said, “What we want to do is to be able to say to these folks, you know what, the Affordable Care Act is not going to be the reason why insurers have to cancel your plan.”
Colorado Republican Committee Chairman Ryan Call, in a statement issued Thursday, said Obama repeatedly lied during the political battles that led to passage of the Affordable Care Act.
“While the vast majority of Americans opposed Obamacare, they trusted President Obama when he repeatedly said that they could keep their insurance if they liked it. Now, it’s apparent that President Obama knowingly lied to the American people, and the majority of citizens no longer trust him.
U.S. Sen. Mark Udall, one of 21 Democrats up for re-election in 2014, welcomed the White House’s efforts to allow people to keep their canceled health-insurance plans. Udall, in a news release issued Thursday said Obama’s proposals are similar to a measure Udall has introduced – the Continuous Coverage Act. But Udall said in the news release he believes more certainty is needed for Colorado families and again called for an extension of the open-enrollment period.
The White House’s approach, Udall said, is a scaled-down version of his proposed two-year solution for dealing with the canceled plans.
“I am glad the White House is starting to address my concerns and those of thousands of Colorado families that received insurance cancellation notices,” Udall said, adding he would prefer a longer extension than one year.
Call said Obama and “radical liberals” such as Udall are facing blowback from their constituents, and Obama is trying to rewrite the law.
“It’s time for President Obama and Sen. Udall to listen to the hardworking Americans who overwhelmingly oppose Obamacare,” Call said. “They must repeal this disastrous legislation and work on solutions that will actually reduce the cost of health care, give small businesses the certainty they need to grow, and end this failed experiment that is impacting the lives of everyday Americans.”
On Thursday, Udall sent two letters today to Health and Human Services Secretary Kathleen Sebelius and Centers for Medicare & Medicaid Services Administrator Marilyn Tavenner. In the first letter, Udall pressed the federal government to ensure it is fully protecting Americans’ personal information from cyberattacks and hackers. In the second letter, Udall urged the agency to adopt some of the functions of Colorado’s more successful online health-care marketplace.
Obama spoke at a news conference where he repeatedly took responsibility for the woeful rollout of the health-care program often called “Obamacare.” Officials disclosed Wednesday that fewer than 27,000 enrollments were completed in 36 states in the first month of operations for www.healthcare.gov .
Including enrollment of more than 79,000 in the 14 states with their own websites, the nationwide number was 106,000 for October sign-ups. But that is still far fewer than expected and a mere fraction of the cancellation notices that have gone out because of the law – more than 4 million, according to an Associated Press survey.
Obama’s approval ratings in polls are also sinking, and he readily conceded that after recent events, the public can legitimately “expect me to have to win back some credibility on this health-care law in particular and on a whole range of these issues in general.”
The president also sought to shelter from political fallout any congressional Democrats who echoed the promise he repeated often when the legislation was under consideration in Congress – that anyone who liked his or her coverage would be able to keep it. “They were entirely sincere about it,” he said of the lawmakers. “It’s not on them, it’s on us.”
Shortly after Obama spoke, the major industry trade group, America’s Health Insurance Plans, warned in a statement that prices might rise as a result of his new policy. “Changing the rules after health plans have already met the requirements of the law could destabilize the market and result in higher premiums for consumers,” it said.
A few hours later, the head of the National Association of Insurance Commissioners added a fresh word of caution. Louisiana Insurance Commissioner Jim Donelon, president of the group, said Obama’s proposal could lead to higher premiums and market disruptions next year and beyond.
“In addition, it is unclear how, as a practical matter, the changes proposed (Thursday) by the president can be put into effect. In many states, cancellation notices have already gone out to policyholders and rates and plans have already been approved for 2014,” he said.
