Multiple sources are reporting that the Obama administration will soon be announcing a new exemption for the Affordable Care Act in the form of a letter from HHS Secretary Kathleen Sebelius.
The Obama administration intends to announce that anyone who had their health insurance plan canceled can obtain a hardship exemption under Obamacare and buy a catastrophic insurance policy instead of a more comprehensive health plan, a senior administration official said Thursday night.
The plan, which comes as an effort to remedy some of the damage that has been done to policyholders since the rollout of the ACA, comes as an interesting compromise for a president who has been a very vocal critic of catastrophic policies in the past. Indeed, the entire rationale behind the health care reform was that such plans don’t provide adequate coverage to their beneficiaries. I understand that the administration is in a bind, and I do appreciate even this modest effort at ameliorating some of the pain people are feeling at the moment, but it certainly won’t go unnoticed that they are now falling back on the very same insurance polices they have been criticizing for years.
On a different note, it will also be interesting to see how young people who sign up for this catastrophic coverage under the “hardship exemption” will be counted when it comes time to tally the insured at the year’s end.