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President’s “Fix” Won’t Help; May Trigger Insurance Death Spiral

President's "Fix" Won't Help; May Trigger Insurance Death Spiral
Rule Defers Some Cancellations Until after 2014 Election


(Washington, D.C.) – Today the President announced his proposed "fix" to the problem of millions of Americans losing access to their current health insurance plans due to new mandates imposed by the Affordable Care Act (ACA), also known as Obamacare. Under this latest desperate and short-term change to the law, policies that had been canceled may now be temporarily extended or reinstated – assuming individual states permit it, and insurers are willing and able to put them back into place after years of preparation to comply with the law. Insurance industry representatives say that this last minute reversal by the President may result in an insurance industry 'death spiral,' as younger and healthier people reject the higher-priced options offered under Obamcare.

This change is one of a number the President has made to the law – including the delay of the employer mandate, which requires large employers to offer insurance to their workers or face penalties. The President has refused to offer a similar extension to individuals. Despite ongoing problems with the website, concerns about affordability and quality of insurance available under the law, and pressure from within his own party and supporters, the Administration insists on moving forward with this flawed law.

Daniel Garza, Executive Director of The LIBRE Initiative released the following statement:

"Today the President sought to deflect blame to insurers and state officials, all while admitting that his team did not recognize the complexity of restructuring the insurance industry. He also claimed no one warned him of the impending disaster with his health reform website. This is deeply disappointing.

It should be clear by now that there are fundamental problems with this law. It's raising insurance premiums, cutting Medicare, leading employers to limit worker hours, prompting insurers to narrow their provider networks, causing doctors to no longer see some patients – the list goes on. As these negative effects have become clear, the President has offered a series of short-term 'fixes' that don't address the real problems. This is just one more – and it will prove largely ineffective in ensuring Americans have access to care.

While the President is acknowledging that the rollout was flawed, he must also recognize that health care nationwide is too complex a challenge for Washington to dictate a one-size-fits-all solution. The President is losing the trust of the American people because he has not been honest with them – yesterday's low enrollment numbers make that clear.  Once he is willing to accept solutions that empower patients and doctors to make their own health care choices, he can help lead on health reform that is fair, that will work, and that will regain the trust of the American people."

Learn more about "The Accountability Project" campaign and LIBRE's efforts to keep elected officials accountable for supporting the flawed Obamacare law that is causing families everywhere to lose their current health care plan and lose their full time jobs. They are elected to make the right decisions for the people- let's keep them accountable.

For interviews with a LIBRE representative, please contact: Judy Pino, 202-578-6424 or Brian Faughnan, 571-257-3309.