By Dr. Merrill Matthews Institute for Policy Innovation.
Reuters reported last week that the
Democratically controlled House of Representatives launched an investigation
into 12 health insurers … over their sale of short-term health insurance
plans."
These investigations" are not fact-finding efforts; they are tools of
intimidation. And their message is clear: Either get back on board with
Obamacare or expect to spend a lot of time engaged in filling out useless
paperworkor worse.
Its not the first time. In August of 2009 when the Democratically controlled
House was initially trying to pass Obamacare legislation certain House
committee chairs sent letters to numerous insurers demanding they answer a
whole host of questions.
One insurance company CEO told me at the time he had a dozen or so red folders"
on his desk containing House inquiries that he would have to devote significant
time to addressing.
The House committee chairmen didnt really want any information from insurers;
they wanted to let insurers know there was a new thug in town and the companies
had better get on board or expect to be harassed.
Thats happening again.
Some health insurers are now considering expanding their short-term
limited-duration insurance plans (STLDI) by offering better benefits than they
typically have.
The goal is to create some more attractive health insurance options that cost
significantly less than Obamacare-qualified plans.
STLDI plans are exempted from most Obamacare regulations and coverage mandates
and so can offer much more affordable policies.
Since only a small number of Americansabout 9 million at the beginning of 2019actually
receive Obamacare subsidies to defer the cost of coverage and since almost no
one can afford individual coverage now that Obamacare has made it affordable"
insurers are trying to create an alternative.
But rather than applaud the effort Democrats on the House Energy and Commerce
Committee called STLDI junk" even though what insurers are doing is perfectly
legal and appropriate.
Note that had Obamacare lived up to the false promises of increased access and
affordability made by President Obama and nearly every Democrat there would be
little or no need to expand short-term policies.
Now Democrats have to try to keep the passengers from trying to
escape their sinking Obamacare ship and one way to do it is to discourage any
alternatives. Americans and insurers MUST be in Obamacare and they better not
complain.
But isnt that always the story of the socialist paradise? Like the Hotel
California: You can check out any time you like but you can never leave!"
Todays PolicyByte was written by Dr. Merrill Matthews resident scholar with the Institute for Policy Innovation.
