If President Barack Obama thinks weathering the storm of health-insurance cancellations is tough right now, he’d better get himself an ark by this time next year. By then, according to Fox News, there will be a flood of cancellations, affecting as many as 80 million Americans, followed by recriminations from Obama’s fellow Democrats if these and other ObamaCare negatives cost them dearly in the midterm elections.
At present, individual insurance policies are the primary ones being canceled, with approximately 3.5 million Americans affected thus far. Next year, however, group policies, which are typically purchased by employers, will be subjected to ObamaCare — and that’s when the impact of the healthcare law will really be felt.
The American Enterprise Institute’s (AEI) Stan Veuger told Fox News that “at least half the people on employer plans would by 2014 start losing plans.” About 157 million Americans are covered under such plans.
A recent AEI analysis “showed the administration anticipates half to two-thirds of small businesses would have policies canceled or be compelled to send workers onto the ObamaCare exchanges,” wrote Fox News. “They predicted up to 100 million small and large business policies could be canceled next year.”
In fact, the report added, as early as July 2010 — while Obama was still telling Americans that under ObamaCare they could keep their insurance if they liked it — the administration’s “mid-range estimate was that by the end of 2014, 76 percent of small group plans would be cancelled, along with 55 percent of large employer plans.”
Group plans are about to meet the same fate as individual plans for the same reason: ObamaCare mandates all types of benefits that those plans don’t currently provide. By law, insurers must cancel noncompliant policies.
Technically, group plans will be subject to the mandates in January, but many small businesses took advantage of a loophole in the law to keep their current policies in place for another year. “If the businesses renewed their policies early, before the end of 2013, then those plans would not be subject to Obamacare’s costly mandates for a full year, in many cases until December 31, 2014,” noted Forbes’ Scott Gottlieb.
That means that starting next October, insurers will begin mailing cancellation notices to employees covered under these policies.
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