Obama's Hope: Cancellations Will Continue
By DICK MORRIS / DickMorris.com
President Obama's program of misleading the American
people continued today when he proposed allowing insurance companies to
rescind cancellations of insurance policies for a year.
His proposal is a way to have his cake and eat it too.
By leaving it up to the insurance companies to decide
on whether or not to cancel, he clearly knows and hopes that they will
proceed with the cancellations.
He thinks they will because, obviously, they make more
money if they force people into higher premium ObamaCare plans than if
they renew the lower premium private coverage now in force. In
addition, insurance companies will not want to go through the
administrative hassles and unreimbursed costs of backtracking on
cancellations that may now be several months old.
Obama wants the cancellations to stand. The more
cancellations, the more people will have to enroll in ObamaCare at the
exchanges. It would be the only way they could continue health
insurance. Now that voluntary enrollments are lagging so badly, his
only hope for decent participation levels is to cancel tens of millions
of policies and force people onto ObamaCare.
He is also making a skillful political maneuver to
make the insurance companies take the hit for cancellations by giving
them the option of not proceeding with them. Now, he can escape voter
anger for cancellations and blame them on the insurance companies -- a
populist posture with which he is familiar and loves to assume.
He hopes that free market Republicans will agree that
the government must not tell companies that they cannot cancel
policies. He hopes that insurance company influence stops the GOP from
embracing that position.
He may be right. The legislation introduced by
Congressman Fred Upton has the same flaw as the Obama Plan in that it
provides that insurance carriers "may" renew policies that don't meet
What is needed is the Landrieu bill which requires insurance companies to rescind the cancellations.
This entire controversy is going to be revisited next
year when employer plans begin to fall to cancellation. All the fixes
-- Obama's, Upton's, and Landrieu's -- all extend only to individual
policies. But while about ten million individual policies are likely to
be cancelled (five million already have bitten the dust), estimates
suggest that an additional 20-40 million policies will be cancelled by
employers, primarily by small businesses that are not required to
The precedent we are setting now on individual
policies will guide how we handle the employer policies when they come
If we can stop those cancellations, nobody will sign
up for ObamaCare and the program will quickly become virtually