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The law is such an inconvenient thing: With a wave of his hand, Obama today has declared that insurance companies need not cancel policies forbidden under Obamacare.
In remarks at the White House today, Obama said, “I completely get how upsetting this can be” lose insurance plans that I promised Americans would be able to keep. “To those Americans, I hear you loud and clear.”
But there’s a catch with president’s proposed solution. The president is not proposing that the law be changed to allow all health insurance plans grandfathered into Obamacare’s eligibility requirements.
No, instead the White House is saying that it will use “enforcement discretion” to allow illegal health insurance plans to be able to still be sold. That is, the Obama administration will not enforce the penalty on individuals for not having eligible health insurance plans and they’ll allow the insurance companies to still sell so-called bad plans — plans they technically can’t sell under Obamacare.
If I was an insurance company I would not take Obama at his word. If they don’t cancel these forbidden policies, they might find the administration coming after them later for not obeying the law.
Also, this action by Obama solves none of the political problems facing the Democratic Party for its creation of Obamacare. Even if it happens, it is merely a one year delay in the cancellation of these policies, which would place their final cancellation to just before next year’s election.