Seven states reject Obama insurance proposal
November 20th, 2013
04:45 PM ET
5 months ago

Seven states reject Obama insurance proposal

(CNN) - If you like your health insurance plan, you might still be out of luck.

At least if you live in one of the seven states that have rejected the President Barack Obama's proposal to allow health insurance companies to renew plans not in compliance with the Affordable Care Act.

The proposal was meant to help the President keep his promise to millions of Americans who have received cancellation notices from their insurance providers, and would allow companies to renew current plans for one year while people transition to the federal insurance exchange.

Because insurance is regulated differently in each state, the president's plan first requires approval from governors and state insurance commissioners, many of whom have been hesitant to make changes for 2104 so late in the year.

On Tuesday, New York became the largest state to reject the proposal. Gov. Andrew Cuomo, a Democrat, told reporters during a press conference that he doesn't think the President's fix is necessary for New York.

"We haven't had the kind of issues in New York in our exchange that they've had nationwide," Cuomo said. "Our program has actually been working well, the website has been working well, and we've had actually very good success with our program so we don't see any reason to change it now `because we're not having those types of issues."

New York joins Washington, Rhode Island, Vermont, Massachusetts, Minnesota and Indiana in rejecting the President's proposal.

Before making his decision, Democratic Gov. Mark Dayton of Minnesota received a letter from the executive director of the Minnesota Council of Health Plans, who told him that the President's fix "comes too late" and "will destabilize the market and result in higher premiums for Minnesotans."

"Your letter makes clear that making the program changes offered by the President last week would be unworkable for your members," Dayton replied, concluding that he would be directing his Commerce Department to continue to "with the plans made before last week's announcement."

Indiana Insurance Commissioner Stephen Robertson issued a scathing response to the proposal, saying that going along with the president's plan "would seriously destabilize Indiana's insurance market and create logistical chaos."

More than 20 states have yet to make an official decision, while so far 21 states have either said they will implement the proposal, or already allowed insurance companies to renew plans prior to the president's announcement.


Filed under: Andrew Cuomo • Healthcare • Indiana • Massachusetts • Minnesota • Obamacare • President Obama • Rhode Island • Vermont • Washington State
soundoff (57 Responses)
  1. Emma2

    To Tony: It's not that the insurance companies "don't want to". The insurance companies HAD to cancel those plans because Obamacare- THE LAW- as liberals just love to keep pointing out-- says that those plans are now illegal. In other words, they had no choice.
    To DATA: How do you blame Republicans for any of this? They haven't been involved in one single step of the process and as of yet, they have not had one iota of meaningful input. The "fix" is nothing more than a proposal at this point and has absolutely nothing to do with the current problems.

    November 21, 2013 05:46 am at 5:46 am |
  2. Grandma of Four

    WHY isn't a "REPEAL OBAMACARE" MARCH ON WASHINGTON, DC being organized???? I do NOT GET IT!! Folks march on all sorts of subjects! THIS ONE IS MAJOR!!! It is going to be CATASTROPHIC next year when small business and employer based insurance kicks in!!! NOTHING quite like a VISUAL!!!

    November 21, 2013 06:30 am at 6:30 am |
  3. Gabbo

    Obama = incompetent His mindless minions must be so proud of him !

    November 21, 2013 06:44 am at 6:44 am |
  4. Nick

    How ironic that all but one of the seven states slapping the President's hand are heavily Democratic. It also reinforces something conservatives wanted from the beginning – allowing companies to compete across state lines would have been a good thing and may have actually helped Obama with this problem.

    November 21, 2013 07:05 am at 7:05 am |
  5. Brando

    Hey Tony, not to disrespect you but if you read the article, governors also rejected it because this "fix" will just result in higher premiums. WAKE UP, this administration doesn't have the ability to implement this huge program, period. I always tell my kids, if you make a mess, you clean up your own mess and stop blaming others - if you know what I'm saying.

    November 21, 2013 07:12 am at 7:12 am |
  6. nc1965

    Obamacare should have included a public option.

    November 21, 2013 07:35 am at 7:35 am |
  7. Nick

    For those of you that think Obamacare is secure, read the following:

    While Americans across the country are struggling to sign up for ObamaCare due to problems with the federal health care website, at least one enrollee has successfully gotten covered through a state-run exchange: a Colorado man’s 14-year-old Yorkie.

    Fort Collins resident Shane Smith told KDVR he received a letter last week informing his dog,Baxter, that a health insurance account had been opened for the pup through Connect for Health Colorado.

    Smith told the station he had to sign up for coverage through the state exchange because his health insurance plan was cancelled under ObamaCare. He isn’t sure how Baxter wound up getting enrolled instead, but he said he did give Baxter’s name as a security question as part of the registration process.

    November 21, 2013 07:55 am at 7:55 am |
1 2 3