Since 2008, President Barack Obama repeated publicly that his healthcare reform plan, the Patient Protection and Affordable Care Act (ACA), would not cause any Americans to lose their health insurance plan if they wanted to keep it. New York Magazine pegged the number of times Obama claimed this at 23, while other sources counted more than 36 times the promise was offered.
On Thursday, the president apologized for making that promise. ‘‘I am sorry that they are finding themselves in this situation based on assurances they got from me,’’ he said in an interview with NBC News’s Chuck Todd. ‘‘We’ve got to work hard to make sure that they know we hear them, and we are going to do everything we can to deal with folks who find themselves in a tough position as a consequence of this.’’
The president’s apology came after criticism of the high level of “churn” — the rapid dropping of policies from an insurance carrier — that has been unfolding since the ACA was implemented. Many of these cancellations are being blamed on the higher benefit requirements of the ACA, which many lower-grade, individually purchased insurance policies do not meet.
However, income shifts, normal life events, the development of major medical conditions or an increase in policy payouts all could cause an eligibility fluctuation that would trigger churn at a rate of around 28 million Americans at any given time, per a 2003 Commonwealth Fund report.
Despite insurance churn existing pre-Obama, the president has absorbed the blame for it due to his promise that it would be a non-factor in the ACA’s rollout. A number of Democrats are moving toward creating a framework in which the president’s promise will be enforced. Sen. Mary Landrieu (D-La.), on Monday introduced the Keeping the Affordable Care Act.
“When we passed the Affordable Care Act, we did so with the intention that if you liked your health plan, you could keep it. A promise was made and this legislation will ensure that this promise is kept. For many consumers, plans in the Marketplaces may offer superior coverage at a good value that saves them money. But people should be able to keep their plans if they want to,” Landrieu said in a press release. “I have said repeatedly that the Affordable Care Act isn’t perfect, and I am willing to work with anyone who wants to improve it and implement it correctly. Middle class families and businesses need and deserve access to quality, affordable health insurance, and I hope that leaders from around the country and from both parties will join me in this effort.”
Landrieu’s bill will allow policyholders to keep their policies for as long as they keep up with payments. The bill would also force insurance companies to disclose how the customer’s current plan is out of compliance with the ACA’s requirements.
The bill, sponsored by Sen. Kay Hagan (D-N.C.) and other red-state Democrats, represents a concession of sorts. Hagan faces re-election in 2014 and is currently the target of a television ad campaign blaming her for her support of the ACA.
“Obviously it’s not going the way it should and I’m disappointed and I’m frustrated and it’s totally unacceptable because the American people deserve better and the way I look at it, North Carolinians deserve better,” Hagan said.
Despite this, Hagan still supports the ACA, arguing that the beleagured ACA application website, HealthCare.gov, is “getting better.”
“We will get through this,” Hagan added. “There are going to be a lot of plans that have better coverage and many people will get a tax credit to help them with their insurance premium.”