The same insurers that were happy to pay out tens of millions of dollars for coverage of Obamacare’s individual mandate, the Obamacare health care law, are now saying that it is illegal for anyone who doesn’t qualify for cheap renters’ insurance to buy it.
That was the message that got a lot of coverage in the Wall Street Journal yesterday, with the headline “Insurers: ‘Low-Hang Fruit’ Is Illegal.”
The insurers have come out against the Affordable Care Act’s individual coverage mandate because it forces low-income people to purchase a catastrophic insurance policy in order to afford the insurance.
This is an issue that is likely to go far beyond the individual mandate because a lot more people are buying coverage through their employers.
Insurers and employers are fighting this provision because it could affect their business models.
But a large chunk of the insurance market is based on self-insurance, and the insurers are worried that the mandate could have a significant impact on the health insurance market.
They’re worried that people who are in these self-insured plans could find themselves unable to afford health insurance for their needs because of a lack of coverage.
So insurers are coming out against this provision and saying that is not allowed, even though it is legal.
The fact is that this provision was not the reason that many people signed up for the individual health insurance coverage they were promised.
The law specifically said that insurers could sell insurance plans to those who could not afford it on their own.
Insurance companies have been trying to make the individual insurance market less expensive for years, and they’ve succeeded at that goal by offering cheaper plans, particularly with the Affordable Health Care Act, known as Obamacare.
But the law did not guarantee that people buying insurance plans on their behalf would be able to afford them.
If insurers want to keep people in the individual market, they need to make sure that those who buy coverage on their side can afford it.
So they’re arguing that it’s illegal to sell coverage on behalf of low-wage workers.
But it’s not illegal.
Insurers say that the only people who would be allowed to buy coverage in their self-assurance plans would be people who had been unable to buy the coverage on the individual plan they were purchasing.
In other words, the people who have been unable or unwilling to purchase coverage on a self-based plan would be exempt from the mandate.
So what does this mean for low-cost renters?
Well, if a person who is eligible for affordable renters’ coverage does not qualify for it, then their self insurance policies are not eligible to be sold on the exchanges.
In fact, insurers are already saying that they are not selling affordable renters insurance.
Insurer Navient, for example, said this in a press release: “In this case, you cannot sell a coverage on your own that is being sold on an exchange.
And even if you could, you would have to pay a fee to the government.”
Insurers have also been warning that the individual and catastrophic insurance mandates are not working out for the poor.
The Affordable Care Action Fund, a nonprofit that advocates for affordable health care, said in a report last year that the two mandates are “largely ineffective” and that the law is creating “a large group of uninsured.”
The American Enterprise Institute’s Robert Laszewski said this: “It is not just the mandate itself that is hurting the poor; it is also the lack of incentives for employers to create or maintain their own coverage.
Insured workers will have fewer incentives to participate in coverage, as insurers would no longer be required to pay premiums to the state or to individuals.
They will be able simply to opt out of a plan they do not want to participate.
And the ACA is creating a huge pool of low income people who will be left behind in the market.”
Insurance Commissioner Jon Cooper told the Wall St. Journal: “I can tell you that we have no problem with low- and moderate-income families being able to get affordable coverage through self-negotiated plans, which they already do.
The key is that there are requirements for the insurers to follow.”
He added: “But it would be really irresponsible to put this requirement on everybody.
We can’t just put it on everybody.”
Insurer plans in the state of Illinois are facing similar criticism for not providing coverage to low-level earners, which would affect the states Medicaid program.
The state has also said that it does not allow for the low-risk pool to be used to provide coverage to people with income between 100 and 300 percent of the federal poverty level.
Insuring low-to-moderate earners would affect insurance rates in the other states that have not adopted the federal requirement.
Insurer executives are now fighting this issue because it would hurt their business model, and that is something they are very concerned about.