Special Investigation: How Insurers Are Hiding Obamacare Benefits From Customers

[Capt. Obvious]

Donna received the letter canceling her insurance plan on Sept. 16. Her insurance company, LifeWise of Washington, told her that they'd identified a new plan for her. If she did nothing, she'd be covered.

A 56-year-old Seattle resident with a 57-year-old husband and 15-year-old daughter, Donna had been looking forward to the savings that the Affordable Care Act had to offer.

But that's not what she found. Instead, she'd be paying an additional $300 a month for coverage. The letter made no mention of the health insurance marketplace that would soon open in Washington, where she could shop for competitive plans, and only an oblique reference to financial help that she might qualify for, if she made the effort to call and find out.

....

"The info that we were sent by LifeWise was totally bogus. Why the heck did they try to screw us?" Donna said. "People who are afraid of the ACA should be much more afraid of the insurance companies who will exploit their fear and end up overcharging them."

....

Across the country, insurance companies have sent misleading letters to consumers, trying to lock them into the companies' own, sometimes more expensive health insurance plans rather than let them shop for insurance and tax credits on the Obamacare marketplaces -- which could lead to people like Donna spending thousands more for insurance than the law intended. In some cases, mentions of the marketplace in those letters are relegated to a mere footnote, which can be easily overlooked.

....

Must read

Insurance companies argue that it's capitalism at work.

[brush]

1. Wow! Can we call them what they are?

The insurance companies in this piece are just crooks with the misleading letters.

They are just taking advantage of customer confusion to cancel plans and say it's because of the ACA.

They really don't have to cancel the plans but they see an opportunity to make even more money off their customers by playing on their lack of knowledge of the new insurance exchanges of the ACA.

It's really all about greed. God, what happened to honest companies that make an effort to give could service to their customers?

[starroute]

2. In some cases they do have to cancel them -- but they're still crooks

The crime here is not that some plans are being canceled, either because they were junk to begin with and no longer qualify under the ACA or because the aren't old enough to have been grandfathered in and the companies see potential profit in replacing them.

The crime is that the companies are sending out misleading letters, attempting to make people think that the much more expensive plan they're suggesting as a substitute is the only alternative, and not providing the information that would let people make their own decisions.

It's starting to look like most of the Obamacare horror stories that have been showing up at places like Fox News come from people who got those letters and freaked out.

Of course, it isn't solely the insurance companies' fault. Some of the blame goes to the Republicans who have very deliberately sabotaged administration efforts to get the word out about how the ACA actually works. And it would be really interesting to know whether there's been any collusion between them.

[brush]

4. You're right about the "junk" policies . . .

that don't really cover anything. For a while my wife and I, after relocating to another state, had to buy insurance on the open market and we each paid over $300 a month for policies but whenever we had to use them hardly anything was covered so we had to dig in our pockets even though we supposedly had "coverage."

What a joke many of these companies are. At least many of their "junk" policy practices are coming to light.

[SoCalDem]

5. Their cancellation letter should have been required to say:

Your policy is no longer being offered, because it qualifies as a "junk policy", covering little and costing you more than the ACA marketplace policies.

ACA requires FREE coverage for:

(and then the freebies listed here)

We now have to cover people with pre-exixting conditions, and MUST pay OUT at least XX% of your premiums paid on ACTUAL healthcare.

The inexpensive coverage you have been paying for is inadequate enough to now be deemed illegal.

[tavalon]

18. I've been calling them the medical mafia for years

Crooks, mafia, useless creeps skimming off the top. Yeah, they all work. What a world we would live in if we ditched health insurance and went for socialized medicine, Medicare for all. The prices would drop and research in other countries shows that the quality of health actually goes up.

I wish we had skipped by this whole silly middle part but we are too stupid to not get our noses rubbed in the robbery one more time! Goddess, I hope I see universal healthcare in my lifetime.

I think it's kind of important that we know the insurance status of those, like me, calling the insurance companies "the Medical Mafia" to make sure I don't have a personal bone to pick. I am a nurse and am insured through my hospital. They are raising my rates some, they are making it much more expensive for me to cover my family but I have $20 copays and prescriptions that are between $15 and $150, depending on whether I go through the mafia's online prescriptions program (I call them the mail order devil's minions). I'm losing my vision coverage as of January. So, yeah, I have a small bone to pick but I'm also far luckier than most.

Health care and the payment of such shouldn't be based on "luck", though, should they?

[IronLionZion]

3. This is like any other sort of service

like cable, utilities, subscriptions, plumbers, home contractors, etc. They want you to stick with them. Why would they inform you to check out their competition's offerings?

Its up to us to inform people of their options and encourage them to check out their state's marketplace.

[elleng]

8. You're right, and unfortunately,

many aren't aware.

[IronLionZion]

10. Its a shame that our side is so bad at PR

I don't know why more people aren't out there sharing the facts.

[plcdude]

19. of the 6 corporations

who control the messages that get out to people who do you suggest we should use? Our side is not bad at PR corporate America is not on our side.

[IronLionZion]

22. grass roots

we could have people just like DUers go on the TV shows and radio and online media and set the record straight. There is some targeted outreach at the community level which is good, but not enough in broadcast media.

Basic stuff like how to view prices or check for subsidy eligibility should be known. The other side spews complete horseshit and doesn't care.

[ReRe]

6. Just think how they are going to feel when ....

... they wake up to the fact that they have been betrayed by their wonderful loyal insurance companies.

[flamingdem]

7. thieves basically

off to the dustbin of history with them

[hockeynut57]

9. i love it when

Insurance companies advertise that preexisting conditions coverage is their idea.

[L0oniX]

11. It's their job to take your money and not pay it out. What else would you expect?

[Stainless]

12. Arm Yourself

Become an informed consumer. All companies exist to make a profit. Most companies advertise so you will buy their products. Health insurance companies can make lots of money by keeping you in the dark. President Obama failed to recognize just how low these predatory insurance corporations would stoop to keep you uninformed. This is why single payer is and always was the correct way to cover health care. Health Insurance sucks!

[DanM]

13. Cool link, bro.

[geek tragedy]

16. thank you for your defense of private insurance corporations nt

[DanM]

21. Huh? n/t

[Yo_Mama_Been_Loggin]

14. Too bad the mainstream media has yet to figure this out.

If any of us did our jobs as poorly we'd be fired.

[freshwest]

15. It's a 'protection racket.'

[I hate liars]

17. Sorry for this bit of snark, but

Don't you know that if an insurance company does something illegal or unethical, they'll go out of business when people find out about it and give their business to other companies?

Just like when rapists or pedophiles or murderers commit their crimes, sooner or later, the victims will catch on and stop making it so easy to find more victims.

You know, because with "free markets", "perfect information", and all that other Libertarian stuff, who needs policing?

[Mosby]

20. K and R

[Zorra]

23. Probable sample of a Canadian Health Insurance Policy:

Hi!

If you need medical attention, go to the appropriate satisfactory medical doctor and pick up any prescriptions your doctor recommends at the pharmacy of your choice. Get well soon.

Monthly premium cost: $0
Co pay: $0
Deductible: $0
Prescription Drug Cost: $0

Thank you for participating in Canadian Public Health.

This Policy underwritten by the People of Canada.

[B Calm]

24. I The government should be all over these crooks.