Revealed: Obamacare plans will cost MORE 'in many cases' even with government subsidies, officials admit for the first time

By David Martosko, U.s. Political Editor

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The Obama administration has directly conceded for the first time that 'in many cases,' health insurance plans offered through government exchanges are more expensive than plans consumers bought before the Affordable Care Act became law – even when government subsidies are figured in.

In a letter to state insurance commissioners, Center for Consumer Information and Insurance Oversight director Gary Cohen wrote on Thursday that one reason for the new Obamacare measures the president announced Thursday is that millions of consumers receiving cancellation letters from their insurers are learning the Affordable Care Act options are in fact less affordable.

'Although affected individuals and small businesses may access quality health insurance coverage through the new Health Insurance Marketplaces,' Cohen wrote, 'in many cases with federal subsidies, some of them are finding that such coverage would be more expensive than their current coverage, and thus they may [be] dissuaded from immediately transitioning to such coverage.'

His written statement contradicts President Obama's campaign promises that the Affordable Care Act would lower costs for Americans.

In October 2008 he said during a campaign rally in Columbus, Ohio that 'we are going to work with you to lower your premiums by $2,500. We will not wait 20 years from now to do it, or 10 years from now to do it. We will do it by the end of my first term as president.'

SCROLL DOWN TO READ THE LETTER

While Obama announced changes to his signature health care overhaul law on Thursday, his chief insurance oversight deputy told state officials that Obamacare costs will often by higher than consumers are used to

While Obama announced changes to his signature health care overhaul law on Thursday, his chief insurance oversight deputy was telling state officials that costs on the Obamacare website will often by higher than consumers are used to

Smoking gun: The Obama administration has admitted that 'in many cases,' insurance policies offered through Obamacare cost more than consumers' previous plans, even when they get federal government subsidies

Smoking gun: The Obama administration has admitted that 'in many cases,' insurance policies offered through Obamacare cost more than consumers' previous plans, even when they get federal government subsidies

Center for Consumer Information and Insurance Oversight director Gary Cohen let the cat out of the bag, writing that for 'many' consumers, Obamacare plans 'would be more expensive than their current coverage'

Center for Consumer Information and Insurance Oversight director Gary Cohen let the cat out of the bag, writing that for 'many' consumers, Obamacare plans 'would be more expensive than their current coverage'

Cohen's letter also goes further than the words Obama used Thursday to hedge his bets while he outlined a new strategy to allow Americans to keep policies that their insurers have already canceled.

'My working assumption was that the majority of those folks would find better policies at lower cost or the same cost in the marketplaces,' he said.

'We will continue to make the case, even to folks who choose to keep their own plans,' Obama promised minutes later, 'that they should shop around in the new marketplace because there’s a good chance that they’ll be able to buy better insurance at lower cost.'

That 'good chance' of cost savings is a weaker standard than the White House has employed before with messaging that promised no insurance price hikes to 'most people.'

 

On Nov. 4 the president told a partisan crowd of Obamacare supporters in Washington, D.C. that 'because of the competition between insurers' buily into the Affordable Care Act, 'and the new health care tax credits, most people will be able to buy better plans for the same price or even cheaper than what they’ve gotten before.

Cohen's office is a subagency of the Centers for Medicare and Medicaid Services, the Health and Human Services Department agency in charge of implementing the failed healthcare.gov website that has made Obamacare's rollout a cringe-inducing national embarrassment.

His letter also sets the terms of Obama's new policy shifts, outlining a rule that would only apply to insurance policies in place by October 1.

Savings THIS big: Health and Human Services Secretary Kathleen Sebelius has been Obama's most visible public Obamacare defender, but she will face new questions about consumer choice and insurance price tags

Savings THIS big: Health and Human Services Secretary Kathleen Sebelius, a former Kansas governor and insurance commissioner, has been Obama's most visible public Obamacare defender, but she will face new questions about consumer choice and insurance price tags

Timeframe: If you like your plan, you can keep it, unless you bought it since October 1, 2013

Timeframe: If you like your plan, you can keep it, unless you bought it since October 1, 2013

'The transitional relief afforded in this document is not applicable to newly obtained health insurance coverage,' he wrote.

'It applies only with respect to individuals and small businesses with coverage that was in effect on October 1, 2013.'

Insurers may balk at the president's latest set of requirements. His new 'fix' to Obamacare would require companies to write to each cancelled policyholder, outlining their options including the new exchanges.

An insurance industry executive who requested anonymity told MailOnline that the cost of complying will reach tens of millions of dollars.

'If we cancelled a half-million [people],' the executive said,' now we have to spent money researching every policy to see what to do, then send a half-million letters in the mail? Good lord.'

The president of the health insurance industry's largest trade group warned Thursday that Obama's new plan 'could destabilize the market and result in higher premiums for consumers.'

'Premiums have already been set for next year based on an assumption of when consumers will be transitioning to the new marketplace," according to Karen Ignagni, the president of America's Health Insurance Plans.

'If now fewer younger and healthier people choose to purchase coverage in the exchange, premiums will increase and there will be fewer choices for consumers.'

CMS letter on Obamacare Nov-14-2013.pdf


The comments below have not been moderated.

Obama is not the 44th pres of the US, he is the 1st Dictator of the US. Last pole I saw (I think it was the NBC pole) 86% of the US people are against Obamacare and he enacts it anyways. WHAT KIND OF DEMOCRACY IS THIS???? He just does what he pleases no matter what the American people think. DICTATOR!!!!!!!!

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If you voted for him, you're getting exactly what you deserve. Unfortunately, the rest of us are stuck with it, too.

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OORRRHHHAAAAAAAAAA!!!! Semper Fi

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And which side was that told everyone who would listen exactly what would happen and supplied zero votes? Just wait until next year when 100 million employer supplied plans get hit, right in time for mid term elections.

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It seems painfully obvious that the insurance companies are going to profit from this debacle, whether the ACA is repealed or not; considering the fact that the committee that wrote the law was composed largely of insurers and HMO execs. It seems that the ACA was intended to fail. Obama's scheme was to force us into a government controlled single-payer system, but the insurers have sabotaged the ACA so that it will eventually have to be repealed, and in the meantime they will have raised their rates across the board.

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The Affordable Care Act is AFFORDABLE to whom? Obama with his millions probably thinks it is very affordable to all. After all, someone has to pay for all of that useless Maternity care, birth control pills, children's vision, mental health etc etc. Watch the premiums for Medicare Part D go up dramatically when the "donut hole" disappears next year. Before Obama totally ruins this country, we need to make our voices heard in Washington and impeach this radical dictator.

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Affordable to Barry's base who will have the GOPs base pay for their care. Everyone else should just bend over. If you voted for Barry is this your fault.

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Obama is the worst thing ever to have hit the USA. An anti-Christian, anti-freedom, race bating Marxist.

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BUT, thanks to the Democrats and the media, he had 5 years full of vacations, full of parties with the rich, full of shopping tours, full of money-making, full of golf days, ...! --- WHAT a president!

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Cast iron solid proof for the bleeding heart liberals that big bloated liberal government can't run anything well and that they are totally incapable of spending tax payers dollars responsibly. This screw up of a president is throwing away our hard earned tax dollars on his health care experiment. Even after everyone told him it would not work, people were screaming that it would not work and now look.

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With kids college, motgage and car payments, My family does not have an extra $1400/mo for healthcare. Get rid of health insurance companies and let the hospitals insure directly. Cuts out 40% of healthcare expenses.

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Please don't forget the insurance companies, who are milking it for all they can. And have been doing so for 30 years. - samsterhamster, Petaluma, USA, 11/15/13, 6:10 AM And please don't forget the malpractice lawyers, who've been milking it for all they can. And have been doing so for 30 years.

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San just can't bring himself to admit that the only thing that has changed was Barrycare.

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So, the Tea Party was right all along!

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Yep, those 'crazy radicals' wanting us live within our means and stop stealing a trillion plus, via the printing press, a year. Scary folks.

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