Here Are Some Reasons Why Most Insurance Companies Will Not Reissue Policies.

President Obama, in one of his typical, I am King, proclamations, declared that insurance companies can reissue canceled health insurance policies.  Now there are several problems with this proclamation he made on Thursday and I will outline a few of them here.



1.  This is not a legislative action, but instead, he has directed, HSS not to enforce this statue at this time.  On Thursday he said it would be for 2014, but because this is not legislation there is not guarantee  this could not be reversed at any time in the same way the President enacted it.



2.  Insurance Companies typically are not going to base decisions upon a non enforcement directive from the government.  There is no legal protect for the insurance companies for either civil or governmental  action based on Federal Statue.



3.  When insurance companies cancel a type of insurance policy they do it with the State Insurance Commissioner of the state they are selling the policy.  To reinstate a policy, they must resubmit all required information, including a premium rate schedules and what is covered.  To submit this data they need underwriters and actuaries to create this data.  Because it is considered a new policy by the state they can’t just resubmit the old data. This is not something that can be done overnight, nor is it something that the Insurance Commissioners rubber stamp with their approval. Had the President acted in the beginning of 2013, before the cancelations, the companies could have easily kept those policies if they choose to.



4. With the way in which the President chose to make the last minute change it opens up the insurance companies to lawsuits in numerous ways, including but not limited to:


A. Discrimination by selling a policy to only certain people (those previously having that policy)


B. Failure to adhere to Federal ACA guidelines regarding premiums.


C. Failure to follow state insurance guidelines .


D. Failure to provide coverage as outlined in the ACA.



5. With the history that this administration has with selective enforcement, intense scrutiny and vindictive actions, I do not see any companies reinstating policies. A promise of non enforcement of  a statue does not give sufficient legal protection for any company, it operating officers or its shareholders.  There was a legislative action in the house to make this change but the President says he refuses to sign it.  My question to the President is as follows,  “Mr. President why are you refusing to make your “promise” a law?”



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