I just spoke with David Oscar, the communications chair for the New Jersey Association of Health Underwriters and a partner at Altigro Financial Group. He had this to say regarding President Obama’s attempt to offer a one-year restoration of canceled plans:

This a new insanity.

I do not know how the insurance carriers and federal government are going to be dealing with this. First, many states require a 60-day notice of a change in plan or a cancellation. It’s November 15! How can they comply with this new element of federal law, and with their state laws?

Second, do they really think carriers are going to be willing to recreate the old plans, while also being mandated to offer the new ones that comply with the exchanges? I have a large number of clients, small to medium-sized businesses, who would much rather renew their old policies on 12/1 than sign up with the newly mandated exchange policies. Everyone is going to want the old ones! You really expect the insurance carriers to willingly deal with the financial loss and legal headaches of switching back?

It is going to be very difficult for carriers to honor this.

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