Feeling the heat over the bungled rollout of the healthcare.gov website and from hundreds of thousands of notices canceling health plans, President Obama offered an administrative fix on Thursday, basically giving people an extra year to stay on those plans.
"We did fumble the ball on it," the President said. "What I'm going to do is make sure we get it fixed."
http://link.brightcove.com/services/player/bcpid774331384001?bctid=2838720457001
But the fix offered by the President still has to get the go-ahead by insurance companies and state insurance commissioners, as a major insurance group quickly gave it a thumbs down.
"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," said Karen Ignagni, President and CEO of America's Health Insurance Plans.
You can read that release at the AHIP website.
One insurance commissioner - Democrat Mike Kreidler in Washington State - quickly rejected the President's plan, meaning it will not apply to those living in the Evergreen State. Here is part of his statement:
" I understand that many people are upset by the notices they have recently received from their health plans and they may not need the new benefits today. But I have serious concerns about how President Obama's proposal would be implemented and more significantly, its potential impact on the overall stability of our health insurance market.
"I do not believe his proposal is a good deal for the state of Washington. In the interest of keeping the consumer protections we have enacted and ensuring that we keep health insurance costs down for all consumers, we are staying the course. We will not be allowing insurance companies to extend their policies. I believe this is in the best interest of the health insurance market in Washington."
Reaction in Congress broke mainly along party lines, though there were indications that some Democrats would still back efforts to put the President's 'if you like your plan, you can keep it' pledge into law.
"I’m encouraged the President took action to stop cancellations but will continue to work on legislation to fix this permanently," said Sen. Mary Landrieu (D-LA), who has her own bill to allow people to keep their plans.
"I am highly skeptical that they can do this administratively," said Speaker John Boehner.
"The new promise on health care plans will prove just as empty as the old," said Sen. Jeff Flake (R-AZ).
The House will vote Friday on a GOP bill that allows people to keep their canceled plans. Democrats are expected to offer their own legislative alternative.
