Saturday, April 26, 2014

Delay in Pre-Existing Insurance Plan: The Crown Jewel of ObamaCare**

The most prized asset of an organization or political group

Crown  Jewel Definition

The Obama administration has stopped taking applications for its Pre-Existing Condition Insurance Plan (PCIP),  the crown jewel of ObamaCare, for 30 more days,  due to lack of funding.   

 To date,  PCIP has served 135,000 people.    PCIP joins other ObamaCare delays:   the employer mandate, delayed until 2015,  delays of caps of out-of-pocket spending,  delays on penalties for those whose plans have been cancelled.

Is nothing sacred with the health law?   This is only one of more than 30 changes the administration has made in the law.  But this change may be the most telling.   From the beginning,  insurers were made the scapegoat for denying policies  for  Americans suffering from pre-existing conditions.    The numbers said to suffering from these conditions were said to be 135 million.   But it was never clear how many of these 135 million  had actually ever been denied coverage, and it was never clear how much this provision would drive up premiums.

But one thing was abundantly clear.   Removal of insurers’ ability to deny coverage for pre-existing conditions was immensely politically popular.  It was always the first explanation out of the chute when justifying ObamaCare.  Even Republicans embraced it,  saying they would keep the PCIP provision  even if ObamaCare were replaced or repealed.    Denial of coverage for PCIP simply appealed to the Americans sense of fairness on all sides  of the political aisle.   

But PCIP may be one of those issues that really  has little to do with health reform costs, but everything to do with political palatability.

Tweet: The Obama administration has delayed for 30 days applications for Pre-Existing Condition Insurance,  ObamaCare’s crown jewel.

**(If you wish to comment or need more information,  email me at, or call me at 1-860-395-1501.  I am available for writing columns or articles  and for speaking engagements.   I would be happy to publish your comments on my blog, which is currently getting 4000 to 6000 page views each day.)

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