Gee, here’s something new and different – bad news about Obamacare.
One health policy expert, Bob Laszewski, is predicting that 16 million Americans will lose their health insurance policies thanks to Obama’s signature legislation. So much for his promise that if you like your health plan you can keep your health plan.
The U.S. individual health insurance market currently totals about 19 million people. Because the Obama administration’s regulations on grandfathering existing plans were so stringent about 85% of those, 16 million, are not grandfathered and must comply with Obamacare at their next renewal. The rules are very complex. For example, if you had an individual plan in March of 2010 when the law was passed and you only increased the deductible from $1,000 to $1,500 in the years since, your plan has lost its grandfather status and it will no longer be available to you when it would have renewed in 2014.
These 16 million people are now receiving letters from their carriers saying they are losing their current coverage and must re-enroll in order to avoid a break in coverage and comply with the new health law’s benefit mandates––the vast majority by January 1. Most of these will be seeing some pretty big rate increases.
This comes on the heels of the news that hundreds of thousands of cancellation notices are already going out.