More Ways Obamacare Could Cancel Your Insurance
Under Obamacare, millions of health insurance plans may be deemed “subpar” and cancelled because they fall into gaps between the four tiers of coverage considered acceptable by the law, according to a video released Monday by the Mercatus Center.
In the video, Mercatus senior research fellow Robert Graboyes explains that, starting in 2013, Obamacare requires all plans to fit within one of four “metallic tiers”, based on the percentage of medical bills that a plan pays for. (RELATED: Report: Premiums Rising Faster than Eight Years before Obamacare COMBINED)
However, there are significant gaps between the tiers, with “bronze” plans covering between 58 and 62 percent of expenses, “silver” plans covering between 68 and 72 percent, “gold” plans covering between 78 and 82 percent, and “platinum” plans covering between 88 and 92 percent.
Graboyes points out that under this arrangement, a plan that covers 59 percent of medical expenses would be considered acceptable, whereas a plan covering 98 percent of expenses “would be considered subpar and would be cancelled.” (RELATED: 700,000 Obamacare Sign-Ups Already Dropped their Coverage)
He then asks viewers to “imagine that a school operated under the same logic as the ACA.” A student earning a grade of 98, he says, would be in the running for valedictorian at most schools; but at the ACA school, that student would fail.
“I know it sounds odd,” he says, “but…this is not the fault of the insurance companies; by law, they have got to cancel policies if they fall outside of those four narrow bands.” Moreover, adjusting policies so that they fit within those ranges is “time-consuming, expensive, and sometimes just absolutely impossible.”
As if this were not counterintuitive enough, he says, “every year, under the ACA, the calculation changes.” As a result, many individuals may find that when they attempt to renew previously acceptable plans, the law may consider those plans subpar and force them to be cancelled. (RELATED: Health Insurance Cancellations Soar Above Obamacare Enrollment Rates)
Along with a new plan, Graboyes says, “you may have to find a new hospital; you may have to find a new doctor; and you had best get used to this year after year after year.”
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