Insurance companies aren't going to like the fix. Here's why:
Second, Sen. Jeff Merkley (D-OR) became the second liberal Democrat (along with Sen. Dianne Feinstein) to sign on as a co-sponsor to Sen. Mary Landrieu's bill to fix Obama's "if you like your health plan, you can keep it" lie. The legislation grandfathers in all health plans up until January 1st, 2013, as Rep. Fred Upton's bill in the House does, but it takes it a step further. Landrieu does more than just allow insurers to continue offering health plans to current beneficiaries. She requires them to do so.
Besides the fact that this plan is likely technically infeasible, it also is a massive government intervention into the insurance market. Many insurers cancelled plans because they were filled with high-risk people. They would now have no choice to continue offering them. Others, like United Healthcare in California, have pulled out of the state individual insurance market altogether; they would now be forced back in, unless they choose to also exit the much-larger group insurance market.
When Landrieu's legislation was supported by mostly red-state Democrats who were up for re-election in 2014, insurers had little to worry about. It was all politics. But now, with Landrieu and Merkley as co-sponsors, this bill just gained mainstream Democratic support. It's unclear what its chances are in the House, but its momentum is building.
Insurers have largely been quiet the past month and a half as the administration tries to get the website working. Everyone involved has the same goal so insurers have seen little value in publicly criticizing the White House. But it's becoming increasingly likely that insurers will face an unexpectedly expensive pool of beneficiaries in their plans and that any legislative fixes to the law will come at their expense. So far, they've stuck by the administration. That could change in the near future.
