The ObamaCare Awakening

At the Wall Street Journal, "Americans Are Losing Their Coverage by Political Design":

She didn't know she'd have to pay for it? Well, she does. And so do you. pic.twitter.com/dNBhSElb9e
— Heritage Foundation (@Heritage) October 23, 2013

For all of the Affordable Care Act's technical problems, at least one part is working on schedule. The law is systematically dismantling the individual insurance market, as its architects intended from the start.

The millions of Americans who are receiving termination notices because their current coverage does not conform to Health and Human Services Department rules may not realize this is by design. Maybe they trusted President Obama's repeated falsehood that people who liked their health plans could keep them. But Americans should understand that this month's mass cancellation wave has been the President's political goal since 2008. Liberals believe they must destroy the market in order to save it.

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Until this month, consumers who weren't insured through their jobs were allowed to buy insurance that provides the best value based on their own needs. One of every 10 private policies is sold through the individual market, covering about 7% of the U.S. population under age 65.

Some states have ruined this market through regulation and price controls, and in others costs can be high. But the individual market works well for millions of people, who can choose from many plans—from Cadillac coverage to cheaper protection against catastrophic illness.

The political problem for the White House is that these choices are a threat to ObamaCare. If too many people keep these policies instead of joining the government exchanges, ObamaCare could fail. HHS has thus reviewed the decisions of people in the individual market and found them wanting. HHS believes as a matter of political philosophy that everyone should have the same kind of insurance, and in the name of equity it wrote rules dictating the benefits that all plans must cover and how they must be financed.

In most cases these mandates are more comprehensive and thus more expensive than the status quo, but the ObamaCare refugees aren't merely facing higher costs. The plans they want and are willing to pay for have been intentionally outlawed. Ponder that one.

Liberals claim the new insurance should cost more because it's better, at least as defined by liberal paternalism. But the real reason they want policies to cost more is to drive as many people as possible out of this market and into the subsidized ObamaCare exchanges.

The exchanges need these customers to finance ObamaCare's balance sheet and stabilize its risk pools. On the exchanges, individuals earning more than $46,000 or a family of four above $94,000 don't qualify for subsidies and must buy overpriced insurance. If these middle-class ObamaCare losers can be forced into the exchanges, they become financiers of the new pay-as-you-go entitlement.

The political press corps is reporting this as a shocking discovery, and we suppose it is if you believed Mr. Obama's promises. NBC News even reports as a "scoop" that the White House knew all along that millions would lose their policies. But HHS's trail of purpose has been there for anyone willing to look.

The text of the Affordable Care Act said that none of its language "shall be construed to require that an individual terminate coverage" that existed as of March 23, 2010, or the date the law was enacted. But as early as June 2010 HHS published a regulation reinterpreting this "Preservation of Right to Maintain Existing Coverage" to obviate that promise.

Even minor policy changes, such as increasing a copay by as little as $5, means that a plan cannot be renewed without rewriting it to obey all of ObamaCare's regulations. In HHS's "regulatory impact analysis" published in the Federal Register, the department estimated that between 40% and 67% wouldn't qualify as a permitted plan, and this was the point—to prevent such policies "from being bought and sold as a commodity in commercial transactions." HHS knew that lightly regulated policies might be popular, especially compared to the restricted choices in the exchanges.

Yep. The Democrats are destroying the private market. That was the plan all along. Healthcare is the road to socialism, although Obama and his regressive allies couldn't sell the policy that way. They had to lie to the American people. The POS legislation would've never passed otherwise.

More at the link.