Obama Administration Admits That Affordable Care Act Caused Cost Of Some Premiums To Rise


In the weeks following the slow and troubled rollout of the new online federal healthcare exchanges hosted at Healthcare.gov, government officials have been amping up the apologies about the ways in which the new plans have been introduced. Yesterday, President Obama publicly admitted at a press conference that the rollout of the Affordable Care Act was a “fumble.” To his credit, the President quickly announced a new plan that would allow insurance companies to offer individuals plans that would otherwise be canceled for another year, according to The Stir. 

One of the main contentious points of the Affordable Care Act rollout, aside from the fact that individuals are seeing their existing plans being canceled, has been that many individuals are finding the federal subsidies to be more expensive than options they could have purchased prior to the enactment of the law. In yet another of a string of admissions and apologies, the government has admitted its fault in causing these costs to rise. 

According to the Daily Mail, the Center for Consumer Information and Insurance Oversight director Gary Cohen wrote a lengthy letter to state insurance commissioners explaining the President’s new measures are a response to individuals finding higher prices through the federal marketplaces. 

The letter reads: “Although affected individuals and small businesses may access quality health insurance coverage through the new Health Insurance Marketplaces, 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.” 

This statement marks the first official admission of the Affordable Care Act’s higher premiums, a direct contradiction to repeated government promises that health insurance would cost less for everyone once the legislation was enacted. While the initial stages of the federal health care premiums marketplace has certainly been riddled with controversy and confusion, at least the Obama administration is owning up to its mistakes and setting out a plan to fix them.

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