More Trouble with Affordable Care

Supporters of President Obama’s coveted Affordable Care Act are in for another surprise after Healthcare.gov’s failure to launch last month; 106,185 people have enrolled in Obamacare. This is a great disparity from the half-million the Obama administration had projected for the Act’s first month of operation.

Of the estimated 106,185 enrollees, only 27,000 were actually made through Healthcare.gov, which handles enrollment in 36 states. The Obama administration promises that the site will be fully operational by the end of the month. 79,400 people were signed up through state run exchanges, California leading the pack with 35,400 enrollments. Some state run exchanges such as Oregon, which has reported zero sign ups, have been suffering problems similar to Healthcare.gov. Only 11 of the state exchanges have actually reported any sign ups at all. The 106,185 number only shows people who have signed up for plans, not having actually paid. As a whole, 975,500 people have created accounts on the enrollment sites, but not all have attempted to select a plan.

“There is no doubt that our failure to roll out the ACA smoothly has put  a burden on Democrats, whether they’re running or not, because they stood up and supported this,” said President Barack Obama at a news conference held Thursday, November 14, where he announced an “administrative fix.” This “administrative fix” would allow American’s to keep their existing plans for another year. The fix was devised after millions of Americans found that their existing healthcare plans did not meet the requirements of the ACA. “This fix won’t solve every problem for every person. But it’s going to help a lot of people,” said the President during the conference.

The “administrative fix” doesn’t apply to everyone, though. Insurance is still regulated at a state level, so it will be up to commissioners to permit the extensions. California, Idaho, Virginia and Kentucky have already stated that all individual plans must adhere to Obamacare guidelines. The “fix” has also caused problems. Industry analysts have pronounced fears of premium hikes if fewer younger and healthier people opt to buy in the exchanges. “Changing the rules after health plans have already met the requirements of the law could destabilize the market and result in higher premiums for consumers. Additional steps must be taken to stabilize the marketplace and mitigate the adverse impact on consumers,” said Karen Ignagni, Chief Executive of America’s Health Insurance Plans.

Despite his apologies, President Obama is still faithful in his reform. “It’s important that we don’t pretend that somehow that’s a place worth going back to. Too often, it works fine, as long as you stay healthy. It doesn’t work well when you’re sick,” President Obama said of the old insurance market.

The Affordable Care Act’s lackluster start has also caused tensions politically. President Obama had personally taken the blame for Act’s failure; however, the Democratic Party’s fervent support for the act shows negatively upon them after the Republican Party gave into their demands to end the government shutdown. On Friday, November 15, Republican Fred Upton of Michigan will test the House of Representatives’ faith in ACA when he proposes to allow all people, not just the 5% of people in the individual market place, to purchase low coverage plans.