More Obamacare Exemptions and Delays

December 20, 2013

The Obama Administration continues to lurch from one fix to another as the Obamacare trainwreck barrels down the tracks. The latest came yesterday when officials declared that people with cancelled health insurance could purchase simple catastrophic plans for one year on a "hardship" exemption.

The irony is that a catastrophic plan, coupled with a health savings account (HSA), is a terrific health insurance solution for the vast majority of people. High deductable plans provide coverage for major medical problems ( similar to auto and home-owners insurance) and HSAs can be used for day-to-day health expenses. HSAs have been available for 10 years and their popularity continues to grow. There are now 9 million people and families that use these tax-deferred accounts, with over $18 billion in total assests.

Unfortunately, except for this one year exemption, Obamacare does not allow catastrophic insurance plans except for people less than 30 years old.

The Administration also produced their own research that concluded only 500,000 people nationally have not signed up for new health insurance after their non-compliant plans were cancelled. This doesn't even satisfy the laugh-out-loud test. Washington state has 2% of the nation's population and has at least 290,000 cancellations. More accurate national estimations are in the range of 5.7 million people.

The Administration has had four years to roll out Obamacare. It remains a disaster.



My family's policy was cancelled because of the so-called "Affordable Care Act." The least expensive alternative my insurer would offer me was nearly DOUBLE my prior monthly premiums.

When I called them on Friday to ask about my least-worst options, I also asked them about the Administration's just-announced "hardship" exemption. After all, catastrophic plan is all that we want or need. Why can't we be free to buy that kind of coverage from an insurer who is free to sell it?

Unfortunately, the person at the insurance company said they didn't yet know what this hardship exemption really meant or how it would work. What is going on here?

The insurer told me I could go on the WA State exchange and perhaps obtain a subsidy for coverage. But we don't want a government subsidy. The government seems to want to make us their dependents. It's as if the Administration just broke my leg and then offered to help me buy crutches.

Congress and the Administration have backed my family and I into a corner. But we're still saying NO.