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August 22, 2014 01:52 PM UTC

Obamacare "Cancellation" Carping Gets Dumber By The Day

  • by: Colorado Pols

As the Denver Post's Electra Draper reports, Republican opponents of the Affordable Care Act in Colorado have taken to regularly updating the number of health insurance "cancellations" in Colorado, so as to pronounce each new one a cataclysmic failure of President Barack Obama, Senator Mark Udall, and everybody else all the way down the line–presumably not Republicans who supported Colorado's health insurance exchange, but everybody else:

The Colorado Division of Insurance has reported that there were about 2,100 health-plan cancellations in the state over the past two months, bringing this year's total to more than 6,150.

The division reported the figures for June 15-Aug. 15 to Senate Minority Leader Bill Cadman last week. Senate Republicans have requested monthly on the numbers…

Since 2013, there have been about 340,000 policy cancelations in Colorado. Many customers received notices last fall as the Affordable Care Act was rolling out.

Policies that did not meet the act's minimum standards were canceled, though customers were offered replacement policies. Other cancellations were the result of business decisions by the insurers as part of normal operations. The insurance division did not track cancelation numbers in the same way before the act.

Opponents of the Affordable Care Act cite the cancelations as proof that it is hurting consumers more than helping.

The conservative Daily Caller portrays these new "cancellations" as further proof of Obamacare's utter failure:

More than 2,000 more Coloradans had their health insurance plans cancelled as a result of the Affordable Care Act, according to a letter from the state regulatory agency to state Senate Republicans.

Following a dust-up earlier this year between Colorado Democratic Sen. Mark Udall and the Division of Insurance, Republicans have requested regular updates on policies that are cancelled because they don’t conform to Obamacare or because companies are getting out of the individual insurance market…

State Senate Republicans have requested regular updates from the insurance commission about continuing cancellations. In March, the commission reported 1,755 cancellations and in June another 2,320. Last week’s total was 2,105.

In all, nearly 340,000 Coloradans received cancellation notices, although not all are because they don’t conform to the ACA; some carriers are leaving the individual insurance market altogether.

The "335,000 cancellations" figure is one we've been talking about in this space for many months, mostly in an effort to debunk highly misleading characterizations of the issue. As we've noted repeatedly, over 90% of these "cancellations" were in fact renewal notices for existing policies, as state health insurance officials had determined this was permissible even before President Obama did the same thing for health plans across the nation. We're honestly surprised to still be seeing this talking point at all, after studies showing the rate of uninsured in Colorado has plunged arithmetically disproved it.

But setting aside the "cancellations" that occurred after the rollout of the ACA versus subsequent total numbers of insured, there's a much more basic reason this claim is just getting silly. Even before Obamacare, insurance plans in the individual and small group markets were routinely cancelled and modified by insurance companies. There is nothing to indicate that we are seeing a higher rate of cancellations today, now that the initial changeover due to ACA mandates is past, than before the ACA was implemented. Insurance companies used to cancel plans for all kinds of financial reasons, many of which have been outlawed by the ACA's tight restrictions on the rescission of policies. Consumers in the individual market were well accustomed to this. But for the things that actually matter, like getting sick, cancellations are no longer a threat as they were before the ACA.

Bottom line: there's a reason why attacks on Obamacare like the "cancellations" canard are widely believed to be running out of stream. It's because voters can see for themselves now that the horror stories promised by Republicans once the ACA went into effect have not come to pass. If the millions of Americans the GOP insists "lost their health insurance" actually had, there would be riots in the streets. Instead, we now know that the rate of uninsured both nationally and in Colorado has plummeted since the ACA went into effect. Republicans continue to pump more and more money into ads demonizing Obamacare, but the point of diminishing return has already been hit.

To quote Gertrude Stein, "there is no there there."


17 thoughts on “Obamacare “Cancellation” Carping Gets Dumber By The Day

  1. I think AC and Moddy should send their paychecks to The Tea Party Express and Sara Palin's PAC.  That way the money would be put into MUCH more effective messages that would finally put the last nail in Obamacare and stop those terrible cancellation letters!

  2. If the only people that voted in November were the progressive mob at pols, Obamacare would not be an issue.

    Fortunately, their insane view of the world is not shared by the rest of the electorate.

      1. I know — it's gotta be because the GOP's solution is so much simpler:

        1.  Can't afford insurance — tough!

        2.  Can't get insurance due to pre-existing conditions — too bad for you!

        3.  Sick — bad decision on your part!

        3.  Going bankrupt from hospital bills — well, that means you're poor, so we really don't care about you

        4.  Dying — make it quick because we at the GOP are tired of your bellyaching!

      2. How about a graph showing priorities? Heck, I'm not happy with ACA. Not one of my single payer advocate friends are. But that doesn't mean we're going to vote for any of your clowns. 

        Plenty of people who don't like it just say that because of what they hear. They've still got their old insurance at work and it hasn't gone up any more than usual. It's just not that important in the lives of people who haven't been negatively affected and may have been positively affected (keeping the kids on until 26, being able to leave a dead end job go into business for themselves and get insurance even though they or their kids have preexisting conditions),in other words the majority, to be at the top of their lists. And it really isn't. And Garner's not going to be either.

  3. While it's true that th GOP is, on a national scale, backing away from the Obamacare-scare tactic, I think it has a chance of being successful in Colorado. If your objective is to get your increasingly elderly-on-Medicare base riled up and voting, this may be an effective tactic.The fact that it's immensely dishonest won't matter. 

    1. Don't know why it would be more successful in Colorado than elsewhere. Even if people on medicare are more likely to be strongly opposed we certainly don't have a disproportionately elderly population. Quite the contrary. 

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