nos-trum. pronunciation: \nos'-trum\. noun. Etymology: Latin, neuter of noster our, ours.
1. a medicine of secret composition recommended by its preparer but usually without scientific proof of its effectiveness.
2. a usually questionable remedy or scheme.
See here for more discussion.

Wednesday, June 9, 2010

Another Poison Pill: Your Low-Cost Plan Is Cancelled, No Replacement

 
And to the one million American who are covered by low-cost plans--axed by the health care law--you can't get the new plan until 2014.

What they expect people to do until then wasn't included in the overhaul.

Here's what happened.  The provision of the law that bans insurance companies from applying caps on payments makes those plans that people are currently covered by invalid--and the ban goes into effect this September.  These are the people who don't have employer insurance and make too much for Medicaid but too little to afford more than these low-cost, capped plans.

Catch 22 is these 1 million insured can't afford anything more expensive and the government's health exchanges don't roll out for another 4 years.   I'm sure those folks are saying, "Thank you, may I have another?"

As reported on Politico (June 8),
"The struggle over the provision highlights the importance of the new law’s implementation timetable and the way its parts interlock with one another. The legislation was front-loaded with consumer-friendly reforms, such as the ban on most annual limits, in hopes the law would become more popular. ...But many of the more comprehensive features of the overhaul, such as the insurance exchanges and tax credits that would help cover those who use limited-benefit plans, don’t come into play until 2014.  That means, for nearly three years, the effect of the ban on annual limits could be costly for the low-wage, seasonal or temporary workers who most often use limited-benefit plans."
Another quirk that potentially harms a lot of people.

The Poison Pills just keep coming.

Doc D
 

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