What Extending the Obamacare Cancelled Policy Moratorium Really Means
obamacare
The federal government has announced that Obamacare will not affect the individual policies for two more years and they will not be cancelled.

What it boils down to is that the large number of cancelled policies will matter politically when the mid-term election time comes in 2014. One can keep the policy with lower deductibles at 66% less than the compliant policy in Obamacare and as part of a better network.

But, is this a good development in terms of sustainability? Data with studies of ROInnovation says, The insurance companies may lose patience past 2015 and start charging the consumers the real cost. As it is, the administration has not convinced too many people to sign up thereby making the program sustainable. Though the administration says that 4 million people have signed up, there are reports that 20% who signed up either chose not to pay their premium or have cancelled their polices. And, 2% to 5% of those who paid their January dues have failed in paying the next month premium. The safest estimate is that 3 million people are into Obamacare.

The government says that subsidy is going to be given to 82% who have enrolled through exchanges. That will mean that only some 2.5 million will be eligible to get subsidy. This is a pathetic figure compared to the Kaiser Family Foundation estimate that 17.2 million people are eligible for the scheme.

As March 31 approaches, at a most optimistic scenario, the government may succeed in getting 30% eligible people into its program but that will hardly form a sustainable pool. In order for the 30% of people who are prone to illnesses to always be covered, there has to be another 70% of the eligible group to support the 30%. That means that the lesser the base, the lesser the opportunities for all to be covered.

Can the Congressional Budget office’s projections about a third of participants signing up and continuing through the first three years be taken at face value? If the first year is unattractive, so will be the consequent years. How can we be sure of the policyholders continuing?

Health care companies which are participating in Obamacare are not comfortable. They have pushed the employer mandate twice and deadlines have been either delayed or ignored. Insurance companies have no reason to believe that the policies would be converted to Obamacare.

The administration might choose to let its employees take their own decision on whether they want to join Obamacare. In which case, they may stick to their old individual coverage.

It is the flaw in the law that is causing the delays. However, the biggest problem Obamacare is facing is that it people are not very amenable to the plan but government want to sell it to them.

We can conclude that what Obamacare needs is a fundamental fix. There are many ardent supporters of Obamacare but even they are realizing that the flaws have to be removed for it to meet with a semblance of success.

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Jenny Corteza is a blogger and designer by passion and profession. She manages online content for many brands and is a specialist and handling online slanders for bigger and smaller brands maintaining their profiles on various platforms.