Obama Knew Most Americans Would Not Be Able To Keep Their Existing Insurance Under Obamacare As Early As 2010

Tyler Durden's picture

The news keeps going from worse to worse-er for the administration and Obamacare. The latest hit, however, does not revolve around the dysfunctional healthcare.gov website, whose hundreds of millions of lines of faulty code will take a very long time to fix, but relates to Obama's promises that individuals would be able to keep their existing healthcare plans following the rollout of the Affordable Care Act. The truth, as NBC reports, is they can't but what's worse is that Obama knew as early as July 2010 that 40 to 67 percent of customers will not be able to keep their policy. And that's not all: since the 14 millions consumers who buy their insurance individually will be forced into comparable plans, they are all set to experience a "sticker shock" when "opting" for the mandatory alternatives.

From NBC:

President Obama repeatedly assured Americans that after the Affordable Care Act became law, people who liked their health insurance would be able to keep it. But millions of Americans are getting or are about to get cancellation letters for their health insurance under Obamacare, say experts, and the Obama administration has known that for at least three years.


Four sources deeply involved in the Affordable Care Act tell NBC News that 50 to 75 percent of the 14 million consumers who buy their insurance individually can expect to receive a “cancellation” letter or the equivalent over the next year because their existing policies don’t meet the standards mandated by the new health care law. One expert predicts that number could reach as high as 80 percent. And all say that many of those forced to buy pricier new policies will experience “sticker shock.”

The reason for the sticker shock: mandatory cadillac plan replacements:

Individual insurance plans with low premiums often lack basic benefits, such as prescription drug coverage, or carry high deductibles and out-of-pocket costs. The Affordable Care Act requires all companies to offer more benefits, such as mental health care, and also bars companies from denying coverage for preexisting conditions.

Obama, it turns out, knew all about this:

None of this should come as a shock to the Obama administration. The law states that policies in effect as of March 23, 2010 will be “grandfathered,” meaning consumers can keep those policies even though they don’t meet requirements of the new health care law. But the Department of Health and Human Services then wrote regulations that narrowed that provision, by saying that if any part of a policy was significantly changed since that date -- the deductible, co-pay, or benefits, for example -- the policy would not be grandfathered. 


Buried in Obamacare regulations from July 2010 is an estimate that because of normal turnover in the individual insurance market, “40 to 67 percent” of customers will not be able to keep their policy. And because many policies will have been changed since the key date, “the percentage of individual market policies losing grandfather status in a given year exceeds the 40 to 67 percent range.” 


That means the administration knew that more than 40 to 67 percent of those in the individual market would not be able to keep their plans, even if they liked them.

Enter the lies:

Yet President Obama, who had promised in 2009, “if you like your health plan, you will be able to keep your health plan,” was still saying in 2012, “If [you] already have health insurance, you will keep your health insurance.”


“This says that when they made the promise, they knew half the people in this market outright couldn’t keep what they had and then they wrote the rules so that others couldn’t make it either,” said  Robert Laszewski, of Health Policy and Strategy Associates, a consultant who works for health industry firms. Laszewski estimates that 80 percent of those in the individual market will not be able to keep their current policies and will have to buy insurance that meets requirements of the new law, which generally requires a richer package of benefits than most policies today.

The White House was ready with a canned response:

Nothing in the Affordable Care Act forces people out of their health plans: The law allows plans that covered people at the time the law was enacted to continue to offer that same coverage to the same enrollees – nothing has changed and that coverage can continue into 2014,” she said.


White House spokesman Jay Carney was asked about the president’s promise that consumers would be able to keep their health care. “What the president said and what everybody said all along is that there are going to be changes brought about by the Affordable Care Act to create minimum standards of coverage, minimum services that every insurance plan has to provide,” Carney said. “So it's true that there are existing healthcare plans on the individual market that don't meet those minimum standards and therefore do not qualify for the Affordable Care Act.”

But the reality is always different:

Other experts said that most consumers in the individual market will not be able to keep their policies. Nancy Thompson, senior vice president of CBIZ Benefits, which helps companies manage their employee benefits, says numbers in this market are hard to pin down, but that data from states and carriers suggests “anywhere from 50 to 75 percent” of individual policy holders will get cancellation letters. Kansas Insurance Commissioner Sandy Praeger, who chairs the health committee of the National Association of Insurance Commissioners, says that estimate is “probably about right.” She added that a few states are asking insurance companies to cancel and replace policies, rather than just amend them, to avoid confusion.


A spokesman for America's Health Plans says there are no precise numbers on how many will receive cancellations letters or get notices that their current policies don’t meet ACA standards. In both cases, consumers will not be able to keep their current coverage.


Those getting the cancellation letters are often shocked and unhappy.

In other words, nobody is kicked out of their existing plan... they just can't keep it. Teleprompted semantics at its absolute best, or worst.

Finally, a case study in socialist failure:

George Schwab, 62, of North Carolina, said he was "perfectly happy" with his plan from Blue Cross Blue Shield, which also insured his wife for a $228 monthly premium. But this past September, he was surprised to receive a letter saying his policy was no longer available. The "comparable" plan the insurance company offered him carried a $1,208 monthly premium and a $5,500 deductible.


And the best option he’s found on the exchange so far offered a 415 percent jump in premium, to $948 a month.


"The deductible is less," he said, "But the plan doesn't meet my needs. Its unaffordable."


"I'm sitting here looking at this, thinking we ought to just pay the fine and just get insurance when we're sick," Schwab added. "Everybody's worried about whether the website works or not, but that's fixable. That's just the tip of the iceberg. This stuff isn't fixable."

It isn't, but who cares? By the time the realization that micromaganging anything and everything always fails, it will be someone else's problem.

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GetZeeGold's picture



Barry would lie to us? That really hurts!


Say it ain't so Joe...err....I mean Barry!

Croesus's picture

Just MOAR proof that Obama is NOT acting in ANYONE'S best interests, EXCEPT his bosses...who aren't us... 

(But don't think this is a Red Team vs. Blue Team post...NONE of them, are even worth the lizard sperm they were created with)... 


economics9698's picture

Obama doesn’t know shit.  He reads a teleprompter and believes in bull shit.  He does not think deep enough to understand ulterior motives or unintended consequences.  Tell him something and he will believe it.  Tell him something five minutes later different and he will believe it.  He has the mentality of a 4th grader.

krispkritter's picture

 "This is a big fucking deal..."  Great deal for insurers.  Great deal for the MSM who try and ride the Magic Obama Carpet.  Great deal for Obama who wanted to make history for helping the 'poor'.  Not so great deal for the Serfs.  Nice to see the MSM start to eat their own though, pikers.  Damage is done though. Everyone I hear talking is blaming the Repubs for the 'ceiling' and O'Care so Barry will probably get a pass on immigration which is just another nail in the cofffin.  He'd have to eat a live baby on the WH lawn to get more than 3 MSM outlets to write about it. 

Atlas_shrugging's picture

We have to pass this bill so we can see what's in it.

Ignatius's picture

As in, 'we need to eat all these unknown mushrooms to find out if they're toxic'.

And Pelosi still has a job and a following, for Christ's sake.

smlbizman's picture

if you were paying attention, you also would have known this info in '10....

onewayticket2's picture

So wait.

does this mean i'm NOT a "racist" and i dont "want old people to die!" and "children to starve"?


SWRichmond's picture

The deductible is less," he said, "But the plan doesn't meet my needs. Its unaffordable.

As with all laws emanating from Washington, "newspeak" is the standard which must be understood.  As with the "Patriot" Act, clearly the most anti-liberty anti-patriotic thing yet done, the name tells us what we need to know.

The "affordable care act" is unaffordable.  Exactly so, and we already knew it would be.

RockyRacoon's picture

Don't know 'bout you, but I just don't need another minutiae-picking article about how lying and thieving my government is.   It's a dead horse that no amount of beating will revive.   Uncle Sam has become the scorpion and I expect treatment no less commensurate with that temperament.

12ToothAssassin's picture

Its never a good sign when people are saying of you "What did he know and when did he know it"

The Juggernaut's picture

Whats the issue?!  The Supreme Court already ruled this is all Constitutional!!!   (Sarc-tastic)

Fish Gone Bad's picture

There has never been a better time to lose weight and get into shape.

Manthong's picture


Sound familiar?

ejmoosa's picture

Special thanks goes to the American Media, for without their help, these lies would have been aired well before the 2012 election.



Ignatius's picture

"if you were paying attention..."

What the fuck are YOU talking about?

Smiddywesson's picture

You didn't write anything off base, so I think he meant:  "If one were paying attention.." 

He pronouned your ass by mistake?

Joe Davola's picture

And if you have any common sense at all, it was obvious from the moment the members of the New Know Nothing Party started it out as "Service Members Home Ownership Tax Act of 2009"

4 wheel drift's picture

As in, 'we need to eat all these unknown mushrooms to find out if they're toxic'.

And Pelosi still has a job and a following, for Christ's sake.

indeed....    that will give you the depth of blatant criminality of the politicians and the idiocy and mental retardation of their followers......

quite an adversary to overcome.....  add the gov. workers, and the F$A....   voting these crooks out won't be easy....  opportunity cost must be considered


out of USA a much better option.....

muleskinner's picture

We need to eat the whole shit sandwich to find out what's in it.

SkottFree's picture

Atlas_shrugging  The irony is after they passed it they have yet to read it!

kchrisc's picture

In my humble opinion there was a guillotine in it.

SeattleBruce's picture

"Everyone I hear talking is blaming the Repubs for...O'Care..."

Exactly how are those dots connected?  OK, Bush signed prescrip drugs...but how else?  OK, back to Dancing and Idol...idiots...(and no, this isn't a 'red' team post.)

Herd Redirection Committee's picture

"Everybody's worried about whether the website works or not," 

This reminds me of the "debt ceiling debacle" when the debt ceiling was really the last of anyone's worries, its the debt and deficit and unfunded liabilities that are the problem.

Amazing how the media consistently gets it wrong, hm?

The debate is always framed for us.

kridkrid's picture

Except this article from NBC isn't about the website, it's about lying, which is pretty shocking. Not shocking that the lying was happening and that it was completely absurd... shocking that NBC is calling it out for what it is. NBC!!! Which makes me wonder what's next. For a long time I've felt that our next fascist leader in our long line of fascist leaders will be a pendulum swing of epic proportions once the worm turns and Obama is crucified. It's all theater, mind you, none of it is real.

I thought Dick C's comments over the weekend were telling. We are going to be sold the need for our next leader to recreate fear in our adversaries while fixing the economic mess at home, starting with healthcare. He'll get the trains to run on time, so to speak. It's the next guy who scares me. Don't know who it is yet. Doesn't matter.

onewayticket2's picture

why didnt NBC release this story two weeks ago?

...it's from 2010...you think they JUST got this info yesterday?  NO WAY.

why now, AFTER calling ted cruz who was warning about obamacare's problems, a "terrorist" and other choice words?

kridkrid's picture

I'm only speculating, which is what makes thinking fun when you are willing to take off the blinder of one side being good and the other side being evil... but why? Because Obama Care must fail and fail marvelously. Ted Cruz doesn't care about you... he's an actor. His wife is a Goldman Sachs, CFR member. Ted Cruz is most likely some sort of controlled opposition. NBC doesn't care about you either. They don't run the story to protect the little guy or expose the "truth" unless the "truth" can help to advance a cause. The "truth" is a means to an end, just like a lie. There is not difference for a sociopath.

onewayticket2's picture

i know nbc isnt looking out for me.  Ted Cruz may not be either....but at least he is advocating to keep some power in MY hands vs nancy pelosi or obama's....or, in this case, Sebilius'.

kridkrid's picture

But is he really doing that? IMO, Ted Cruz's role is to keep people like you engaged in the theater. He provides you with the "hope" that one side is looking out for your best interests. This way, the next election/charade can be tilted in one direction or another. They need you. I think about all my well intended liberal friends who supported Obama because they felt we needed to reset our foreign policy... our war-mongering, nation-building, petro-dollar backed imperialism had to end. Obama provided them with that way out. Of course, we hit the accelerator in all of those areas, right? Yet a majority of Americans mostly believe in charade. They buy some of what I say, but mostly chalk this sort of talk up to "conspiracy theory".

Ted Cruz is a fraud. They are all. It's how they get funded to run for office.

pods's picture

Nice to see this here again kk. 

Thank you.


bread n circuses's picture

I'd give MOAR green to kridkrid if'n I could.

4 wheel drift's picture

I think about all my well intended liberal friends who supported Obama because they felt we needed to reset our foreign policy... our war-mongering, nation-building, petro-dollar backed imperialism had to end. Obama provided them with that way out. Of course, we hit the accelerator in all of those areas, right?


laugh or cry ?   your "well intended liberal friends" are a bunch of IDIOTS, because to support this fraud, a muslim, fascist, liar has turned out to be equivalent to cuting off both your arms because your one fingernail was infected with flesh eating viruses.....

i am not supporting the war mongering, etc, etc....  but THIS ?   pathetic, not only they were lied to...  it showed their lack of critical thinking by not questioning the parroting acts of this son of a whore....then again.....

“All the leaders of groups tend to be frauds. If they were not, it would be impossible for them to retain the allegiance of their dupes…”    hl mencken 

kridkrid's picture

Your acute observation is only valid if you 1. didn't vote for Bush, 2. Didn't vote for McCain, 3. Didn't vote for Romney or if you have decided to not vote at all. I'm a fan of the final option, but any 3rd party would do.

4 wheel drift's picture

did not vote.

as i have said before....   the on going charade needs to be terminated....  it is the ONLY real solution...

any other "proposal" that does not include the termination of the FED, and a total restrain of gov. spending to only the absolute necessities, without the on going pork, imperail expansion, and on, and on, and on.....  (which realistically speaking, it will never happen).....  UNTIL  the US Dollar is dethroned as reserve currency, and as the currency used for general commerce, and above all...  oil trade....  until then...  the federal reserve and the government of crooks will continue to fuck us all....  (across the globe)

mencken was clear...  and what has been going on in the recent gov's. is just an explosion of the blatant criminal behavior of these tyrants....


chubbar's picture

I'm with you Krid. When the MSM starts turning on someone they were previously supporting you know something is in the works. I also agree with your concern about the next guy. Remember that this cycle normally ends with a hitler type person in office that rules by decree, not very dissimilar to what is going on with Obama and his PO's.

I don't trust anyone that closely tied to the CFR (cruz) even if he is talking a good game. We've seen this show before.

Meat Hammer's picture

Nah, TPTB have told the media to say whatever the fuck they want because Great Depression 2.0 is unstoppable now, so who really cares?  The next leader won't matter because the .01% will own everything.  They'll let us have all the freedom and liberty we could ever ask for as the masses beg for crusts of bread at the gates of their mansions.

If the MSM is finally telling the truth, shit is about to get ugly.

Froman's picture

You are directly on point...NBC isn't even a news organization it is Comcast Cable who would do anything for a buck. Of all the MSM these bastards lie and edit tape to spin stories more than any of them.   The entire MSM media is full of crap top to bottom:

  • NBC's senior political editor Mark Murray's wife Sasha Johnson is an Obama political appointee and was a former producer at CNN. His ex-wife was an Obama political appointee as well,
  • ABC News Senior Correspondent Claire Shipman is married to White House Press Secretary Jay Carney
  • CNN President Virginia Moseley is married to Hillary Clinton's Dep Sec. Tom Nides
  • CBS News President David Rhodes brother Tom Rhodes is the Senior Obama official that changed the Benghazi talking points.
  • ABC News Predsident Ben Sherwood's sister Elizabeth Sherwoord is a special advisor in the Obama Administration

So is it really any wonder with all of that nepotism going on that the public never gets a straight story out of the MSM? With siblings and spouses scattered thoughout the dung heap protecting each others paychecks and spinning the Obama is a god message to the sheople.

object_orient's picture

Well done. Thanks for connecting the dots.

People get lazy and just blame Obama for everything. There's a huge gov./media apparatus at work and the individual players should be named as often as possible.

El Oregonian's picture

The reason why their saying anything at all is because now that Barry is a lame duck and that nothing will be done now and that he'll retire. So, now these miscreants in the MSM are now scurrying to resurrect their shredded trustworthiness and want to cut their mooring rope to this sinking ship that will not be useful to their survival anymore.

Hence, the sudden realization and reporting of the corruption of Barry's Administration.

Sorry assholes, I do not forget. Quite frankly, You're also DONE...

Urban Redneck's picture

Let me see if I got this straight, given a single legislative text, which was published in 2009, a bunch of dumb ass rednecks and teabaggers figured out- in a manner of weeks, that a bunch of people were going to lose insurance and prices were going to go up. The intellectual hoy-poloy looks at the same document and it takes them 4 YEARS to arrive at the same conclusion that the people that they denigrate as inferior arrived at in 4 WEEKS.

Congratulations MSM, not only are you intellectually inferior to those you despise, but given the scale of that deficit between yourselves and the average person, it is highly unlikely (given Moore's Law) that you could rise even to the level of mediocre cranial processing capacity within your expected lifetime.

Unless, of course, there is another (unspoken) reason for the delay, like keeping the field niggers from wandering off the plantation... but since you would never admit to that- you can just suck it up and choke on the opposition's superiority, and be damn thankful that they're not actual teabaggers.

max2205's picture

NBC would never step on Barrys dick

BandGap's picture

Obama and people like him think they see the "big picture" and know what's best for all. You can talk until you're blue in the face and they won't budge an inch. They lie with impunity for "the greater good". Prepare accordingly.

Kinskian's picture

That's right, and they're lying about immigration reform too. 

ZippyDooDah's picture

Obama knows he's lying. Anything else is bull shit.

CuttingEdge's picture

I equate Obama to that role played by Samuel L Jackson in Django.

DiCaprio plays the MIC, the plantation slaves are representative of the US tax serf populace, and Jackson plays the "house nigga" - shafting the masses to keep his master happy...a role Obama has played so well since his inauguration.

That analogy aside, in 5 years what has he achieved?

US debt at $17 trillion and heading north rapidly.

Food Stamp recipients at 48 million.

ObamaDrone world-wide (in)discriminate policing?

Foreign policy? On that he's more hilarious than watching This is Spinal Tap after a serious spliff (and that is going some!). Like a real life Mr Bean of the political world finding himself in the top job and then unable to stop fucking everything up that he meddles in. Was never a Bean fan but Obomination's arrogance and ego make his self-ridicule great entertainment.

He is an embarrassment to his country (Kenya or USA, take your pick - could be either).

Two positives though:

The rich got richer (only a positive if you are in that bracket)

Secondly, and particularly beneficial to the majority who frequent this site, by his actions of massive intimidation re foreign governments harbouring a fugitive more American than himself (assuming he isn't Kenyan) he authenticated Ed Snowden - a gift which just keeps on giving (and humiliating Obamination more with every revelation). Keep up the good work Ed!