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ProSense

(116,464 posts)
Fri Nov 15, 2013, 10:56 AM Nov 2013

Companies Use Obamacare Confusion To Sell 'Junk Insurance'

Companies Use Obamacare Confusion To Sell 'Junk Insurance'

Eric Lach

Georgene Mortimer, who runs a winery and lives in Hilton Head, S.C., was recently having trouble accessing the online health insurance exchange. So she decided to check in with the local insurance agent who in 2010 had sold her an individual health insurance policy from a company named USHealth Group. It didn't take long for Mortimer to realize something was off.

"She started to basically tell me how bad the exchanges are, and that the exchanges are only for the very sick people," Mortimer told TPM in an interview last week. "And she said, 'Have you had cancer, heart attack, you or your husband?' And I said no. And she said, 'Good, because if you said yes, I would have had to recommend the exchanges.'"

The agent then proceeded to offer Mortimer a product that she touted as not meeting the minimum coverage requirements set by the Affordable Care Act (ACA). The agent strongly recommended that Mortimer sign up before Jan. 1, and said that she could lock her premiums in for three years.

"I said, I thought that non-compliant ACA policies can't be sold," Mortimer said. "She said, 'we can still sell ACA non-compliant plans, but we can't compete on the exchange.' And I didn't know -- I didn't think that was possible."

The Affordable Care Act was designed to make sure all Americans had a certain level of insurance. But TPM has learned that USHealth Group is actively telling consumers that they don't need that minimum level. In fact, company representatives are telling people they'd be better off without it. And the company may be just one player in a larger industry trend, where companies see non-ACA compliant plans, like the so-called fixed benefit coverage marketed by USHealth Group, as a business opportunity.

- more -

http://talkingpointsmemo.com/muckraker/insurance-company-using-obamacare-scare-tactics-to-sell-crappy-insurance

Obama proposes health care fix
http://www.democraticunderground.com/10024033833

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Companies Use Obamacare Confusion To Sell 'Junk Insurance' (Original Post) ProSense Nov 2013 OP
These plans are not illegal under ACA. They just cannot call them insurance. Mass Nov 2013 #1
True, which is why the spin on this is so bogus. ProSense Nov 2013 #2
I can't believe it. I thought the free market was supposed to be our savior Johonny Nov 2013 #3
+1 And of course that's the underlying flaw with the alsame Nov 2013 #4

Mass

(27,315 posts)
1. These plans are not illegal under ACA. They just cannot call them insurance.
Fri Nov 15, 2013, 11:01 AM
Nov 2013

We see them in MA. They use clever names and never use the word insurance. (in fact, they write in fine print: This is not an insurance).

ProSense

(116,464 posts)
2. True, which is why the spin on this is so bogus.
Fri Nov 15, 2013, 11:13 AM
Nov 2013

The insurance companies are doing this. It has nothing to do with ACA.

The bigger point is that these companies are intentionally misleading people and trying to prevent them for shopping the exchanges.

After the President's speech, I hope those who got cancellations letters become more aware and flock to the exchanges for better policies.

Johonny

(20,684 posts)
3. I can't believe it. I thought the free market was supposed to be our savior
Fri Nov 15, 2013, 11:29 AM
Nov 2013

who knew the free market was not a saintly thing filled with fellow Christian soldiers fighting the good fight for our benefit, but really just a cluster* race to the bottom filled with sleazy unregulated slime merchants. I for one am shocked.

alsame

(7,784 posts)
4. +1 And of course that's the underlying flaw with the
Fri Nov 15, 2013, 12:06 PM
Nov 2013

ACA - mandating purchase from a sleazy insurance industry that cares nothing about the health of their customers.

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