The Chicago Sun-Times:
The Affordable Care Act has run into its first huge structural problem as millions of people have been told their individual health insurance policies won’t be renewed because the policies are considered substandard under the new law. On its face, that’s not a problem — a key goal of Obamacare is better coverage. But if they try signing up for a replacement? That’s where the Catch-22 steps in. Pervasive technical glitches and much-higher premiums in some cases either make it impossible to sign up or so much more expensive that people don’t want to.
To fix that — and it must be fixed — President Barack Obama on Thursday said insurance companies would be allowed the option of continuing to offer for at least one year the policies the companies had said would be canceled. Now, Obama has to hope his fix works politically — by forestalling much-worse tinkering that could sink Obamacare — and practically, by helping people with expiring health insurance plans but not starting a chain-reaction that causes the whole program to implode. [...]
Republicans would like to deep-six Obamacare, and the Democrats don’t want it to be used against them in next year’s elections. Sen. Mary Landrieu, D-La., and five other Democrats have been pushing a bill similar to Obama’s fix except that it would require — instead of allow — insurance companies to continue to offer policies that otherwise would be canceled because they don’t offer sufficient coverage. Also, the House is scheduled to vote Friday on a bill by Fred Upton, R-Mich., that would not only allow people to renew policies that otherwise would be canceled but also allow new customers to sign up for them. The risk of these changes to Obamacare is that cheaper, substandard insurance will lure healthier people who don’t expect to need health care and want lower premium prices. People who are sicker will stick with Obamacare, driving up costs and rates. Landrieu’s and Upton’s bills would exacerbate that problem far more than Obama’s plan would .
The New York Times:
The fix, which deals with the cancellations of individual policies, is far preferable to a destructive Republican bill that is expected to come up for a vote in the House on Friday and to a Senate bill sponsored by some Democrats. But it raises a few troubling questions, most of which cannot be answered quickly. [...]
The House Republican bill, sponsored by Representative Fred Upton, the chairman of the Energy and Commerce Committee, would cripple health insurance reform. It would allow individuals to keep their canceled plans and allow new customers to buy the same plans, which are deemed inadequate under the health reform law. The point of opening the floodgates — allowing large numbers of people to have substandard plans and remain out of risk pools designed to keep premiums low in the health care exchanges — is to destroy the program. As the House speaker, John Boehner, told reporters on Thursday, “The only way to fully protect the American people is to scrap this law once and for all.” [...]
If a relatively small population of people get extensions, as some experts think likely, the effect on premiums in the overall health insurance market may be minimal. Even so, this disturbing reversal is caused by the incompetence of the administration in ushering in reforms that millions have been waiting for.
Much more below the fold.
The Washington Post:
That doesn’t mean everyone affected will be able to keep his policy. Some state governments will say no. Some insurance companies will be unable or unwilling to execute a U-turn at this late date , even if state regulators let them try. The president’s fix, then, would merely ease the pressure Democrats are feeling and shift blame onto state and insurance-company officials.
That would be a better outcome, though, than if companies take full advantage of Mr. Obama’s new policy and extend many plans that were set to end, draining the new system of enrollees it needs to function well. [...]
The chief — the only — advantage of Mr. Obama’s proposal is that it’s not as bad as the “fixes” being floated by panicked Democrats and gloating Republicans in Congress.
USA Today:
The other big problem with Obama's plan is that a lot of people still might not be able to keep policies they like. Insurers don't have to renew the expiring policies, and state insurance commissions don't have to approve them.
Already, at least one insurance commissioner — in Washington state — is refusing to let insurers renew policies that don't meet the new standards.
The president's exercise in blame shifting looks good only in comparison with the GOP alternatives.
House Speaker John Boehner's plan — repeal the entire Affordable Care Act — would preserve an unsustainable status quo, leaving 40 million people uninsured and millions more at risk of going bankrupt if they get sick.
Eugene Robinson at
The Washington Post:
The GOP has made clear that it wants to destroy Obamacare, not fix it. Obama’s move Thursday is an inelegant solution that keeps the Affordable Care Act intact — and suggests that it will have not just a rocky first month but a bumpy first year. [...]
So this tempest-tossed launch could be just prelude to a turbulent flight. In the long term or even the medium term, however, I’m much less pessimistic than a lot of folks seem to be.
Transforming the health-care system was never going to be easy. Obamacare realigns the incentives in the system toward wider coverage, cheaper insurance, regular doctor visits and preventive care. Given a bit of time and space, I’m confident it will work.
Those who say otherwise are going to, um, turn out not being accurate.
The Baltimore Sun:
The Latin phrase, Primum non nocere, or "first, do no harm," is one of the central tenets of the medical profession. It ought to be held as dear by those in Washington who suddenly want to "fix" Obamacare — they first should make sure they aren't doing more harm than good. [...] The fix offered by President Barack Obama on Thursday — to allow insurers to keep recently "dropped" customers on their former health plans — is not likely to help many who stand to lose coverage, but it's probably the best the federal government can do at the moment.[...]
The president may have over-generalized the benefits of the ACA before and after its passage, particularly the pledge that everyone could keep their existing coverage. But the story being told these days by the GOP — that Obamacare has done more harm than good — is a bigger prevarication. The health care system wasn't working long before the ACA.
This is a complex business. Insurance companies have made a lot of decisions regarding the terms of their policies and the amount of their premiums based on the mandates of Obamacare (such as the expectation that more people will have to buy coverage). Tinker with the law too much now and you put many of its best features at risk.