One Step Forward, Two Steps Back: Massachusetts Won't Support The President On Individual Mandate Delay; California Is Hesitant

Updates

December 6, 2013: this is simply insane. The Oregon state legislature legal counsel says that the state overstepped its legal authority allowing insurance companies to roll-back their canceled policies. This is the state that can't even get its own state-run health care website up and running -- the only state, as far as I know. This is simply insane.

December 4, 2013: Talk about tilting at windmills. By the time this is resolved, new policies will be in force. If folks really, really, really want their old policies back, wait until the see the "new, revised, improved premiums." The Journal reports that states are divided on letting insurers extend old health policies. But it's a non-story. The insurers won't do it. Example: the map shows that the North Dakota commissioner will allow it, but BC/BS says that's BS.

November 21, 2013: this may be the last update on this subject. The issue is dead. The president said it was "okay" to reinstate policies that have been canceled, but insurance industry, including the state regulators, said a) they won't do it; b) there is not enough time; c) it would raise raise rates; and, d) whoever thinks otherwise is an idiot. Reuters is reporting.

State insurance commissioners told President Barack Obama on Wednesday that his effort to stem a wave of insurance cancellations caused by his signature healthcare law could lead to higher premiums.

Obama met with representatives from the National Association of Insurance Commissioners to discuss the "fix" he came up with last week to calm the uproar surrounding millions of cancellation notices sent to holders of individual health insurance policies no longer legal under the healthcare law, known as Obamacare.
While taking responsibility for the troubled rollout of his law and apologizing for the promises he made that were not being kept, Obama sought last week to address the problem of canceled plans by giving insurers the option to extend them By one year, even if they did not meet minimum standards under the law. 

The insurance market in the United States is heavily regulated at the state level. While individual state commissioners have no legal obligation to go along with Obama's wishes, the White House move effectively put the onus on them for cancellations caused by the administration's law. 

Comments after the meeting reflected continued skepticism by some of the commissioners.

Original Post

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Last week, the president agreed to a partial rollback/delay in the individual mandate.

Within two hours of that announcement, the Washington state insurance commissioner replied, and I'm paraphrasing, "not only no, but hell no."

It appears the Massachusetts insurance commissioner has taken the same stand. Yahoo!Finance is reporting:

Massachusetts' top insurance official said Monday that the state won't allow consumers to keep health insurance policies that fall below the minimum requirements of the federal health care law.

State Insurance Commissioner Joseph Murphy said in a letter sent Monday to the Obama administration that substandard insurance policies are "virtually non-existent" in Massachusetts because of its first-in-the-nation health care law that took effect in 2007.

In a reversal of policy, Obama announced last week that millions of Americans would be allowed to renew individual coverage plans that otherwise would be cancelled under the federal law in 2014.

Murphy wrote that unlike most states, Massachusetts has had a minimum benefit level for six years and that almost all health insurance policies are at or above the new national standard.

"To change course at this time, and delay certain market reforms, could cause confusion and significant market disruption," Murphy wrote.

Murphy said in an interview that about 100,000 Massachusetts residents will need to change to what he called a slightly modified health insurance plan. For example, some consumers might have to change to a lower deductible, he said.

That pretty much settles it. If Washington State (west coast) and Massachusetts (east coast) won't "go back to the past," no state will. It would create an incredible amount of confusion. Folks thought insurance companies were thrown under the bus when President Obama made the announcement; fortunately for the insurance companies, the regulators/commissioners are providing top cover.

Meanwhile, California is dithering; can't decide. Insurance commissioner is hesitant:

California's health insurance exchange remained hesitant to embrace a controversial request from President Obama to extend canceled insurance policies for another year.

The state exchange, called Covered California, said Monday that it won't decide until later this week whether 1 million policyholders with expiring policies can keep their coverage for 2014.

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The list:

• Washington State: NO
• Massachusetts: NO
• Minnesota: NO 
• New York State: NO
• California: NO
• North Dakota: YES (but premiums will likely increase for previous policy)

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The good news: more than 100 million Americans have enrolled in ObamaCare and the on-line exchange was just rolled out last month in all 57 states. -- President Obama, Mail On-Line, November 18, 2013.  The roll-out must have gone much better than originally reported.

Is the president losing it?

President Barack Obama told a conference-call audience of progressive volunteers on Monday evening that 'more than 100 million Americans' – in a nation of less than 314 million – have successfully signed up for health insurance via the Affordable Care Act.

And at a time when his signature legislative initiative's website has made the White House the butt of jokes, the website hosting the conference call was plagued with its own connection errors and other malfunctions.

A weary-sounding Obama made his gaffe during the call, hosted by Organizing For Action, the nonprofit successor to his campaign organization Obama For America. The group claimed 200,000 people managed to listen, aided by an RSVP process that included a fundraising solicitation.

On the other hand, I suppose "progressive volunteers" will believe almost anything.

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As long as we're piling on, the former HHS secretary Tommy Thompson says ObamaCare is "fundamentally flawed." It won't work without young people. Tommy is wrong. It won't work even with young people: the fatal flaw -- no lifetime caps.

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I can't resist. The story above, about California unable to decide, and still thinking about Lou Reed. In case you missed this story. Governor Moonbeam of California signed law allowing "transgender" all grades / school students to use athletic dressing rooms/rest rooms of personal choice. USA Today is reporting:  

California on Monday became the first state to enshrine certain rights for transgender K-12 students in state law, requiring public schools to allow those students access to whichever restroom and locker room they want.

Take a walk on the wild side, ahead of his time:

Take a walk on the wild side, Lou Reed

Lola, The Kinks