Friday, November 15, 2013
Insurers will be hit by anti-selection with Obamacare grace period extension, unless there are more subsidies
The Wall Street Journal is reporting Friday morning, in a front page story by Timothy Martin, Christopher Weaver and Joe Kamp, that insurance companies are somewhat unprepared for Obama’s policy decision, announced Thursday, to allow insurance companies to keep “non-compliant” individual insurance policies in place through Sept. 30, 2014, giving consumers more time to find adequate compliant replacements.
Obama stressed that insurance companies are not ordered to keep them, because companies stop selling some kinds of policies all the time.
The president announced the change in policy at noon on Thursday.
One of the WSJ links is here.
Many leading Democrats, as well as insurance executives, have expressed concern that anti-selection will be a bigger problem in 2014 than had been expected, and the government may subsidize excess claims somewhat.
Picture: my own topical cream, for actinic keratoses on my face from sunlight, costs Medicare almost $1000.