Guest Bloggers Mary Ann Chirba and Alice A. Noble make a timely return to HealthLawProf with the following post:
President Obama’s past assurance to the American public that people could keep their plans if they so desired, and the inaccuracy of that statement has generated the current outcry for the President to do better on his past apologies and to “do something” about the looming individual mandate and the loss of plans people would prefer to keep.
In his announcement on November 14, 2013 the President attempted to do better on past apologies and do something about the rollout fiasco. Contrary to a deluge of early media reports that he has delayed the individual mandate for a full year, the details of his statement reveal a more incremental approach: effectively granting a waiver to certain people in the individual market.
This is not the first time a waiver has been granted for individual policies. Secretary Sebelius granted certain plans, even those with woefully inadequate limits on annual coverage (known as “mini-med” plans) a waiver from the ACA’s new restrictions on annual limits. This waiver permitted these limited benefit plans to be sold up until January 1, 2014, allowing individuals to retain coverage until more affordable and comprehensive policies became available with the rollout of the exchanges. It is possible that some of these “mini-med” plans will continue to be sold as part of the new waiver applicable to cancelled policies.
Despite news reports to the contrary, this latest waiver does not extend beyond those individuals who have received cancellation notices. The individual mandate in all other ways remains—all individuals must obtain coverage or be penalized for failing to do so. That obligation is just as in tact now as it was before this latest announcement. We consider what this new waiver does, does not do, and the potential ramifications of both. First:
What did NOT happen?