Health reform implementation

Report: Millions will lose health plans as ObamaCare takes hold

More than 7 million people will lose their healthcare coverage as a result of ObamaCare’s new standards and normal turnover in the insurance market, according to a new report from NBC News.{mosads} 

Sources told the network that 50 to 75 percent of people who buy health plans individually will receive a cancellation letter in the next year. 

The report alleges that the Obama administration knew this fact because of an estimate buried in regulations from 2010 that “40 to 67 percent” of customers will lose their healthcare policies.

This figure could be greater because many other plans were not “grandfathered” in by the administration under the healthcare law, NBC reported.
Health plans must contain basic benefits such as preventive care because of the Affordable Care Act (ACA). 

Policies that do not meet the new standards will not be permitted starting next year unless they existed in their current form in 2010. 

The Obama administration acknowledges that some people will see their health policies canceled as a result, but notes that replacement coverage will contain richer benefits and more protections. 

People with lower incomes will also qualify for tax credits under the healthcare law to help make their new plans more affordable. 

“There are going to be changes brought about by the Affordable Care Act to create minimum standards of coverage, minimum services that every insurance plan has to provide,” White House press secretary Jay Carney said Monday.

“So it’s true that there are existing healthcare plans on the individual market that don’t meet those minimum standards and therefore do not qualify for the Affordable Care Act.”

The White House also noted that because of normal turnover in the insurance market, between 40 and 67 percent of customers would already not be able to keep their policies.

White House spokesman Josh Earnest dismissed the NBC report as “not new” and “not caused by the ACA” on Twitter.

“NBC ‘scoop’ cites ‘normal turnover in the [individual] insurance market,” Earnest tweeted. “That’s … the problem the ACA will solve.” 

Still, Republicans seized on it as evidence that the president misled Americans when he said, “if you like your health plan, you will be able to keep your health plan” in 2009.

“One of the most important promises made by President Obama … was that Americans who were satisfied with their health plans could keep them,”said Sen. Ron Johnson (R-Wis.) in a statement. “That promise has been broken.”

Speaker John Boehner (R-Ohio) also circulated the report to journalists.

Tags John Boehner President Obama Ron Johnson

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