Why do we have to find this out from a BRITISH paper?
Revealed: Obamacare plans will cost MORE 'in many cases' even with government subsidies, officials admit for the first time
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 of that year 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.'
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.
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