State insurers head: Obama fix could sink health law

The Hill reports:

President Obama’s decision to let insurers offer limited plans that do not meet ObamaCare’s requirements could sink the entire healthcare law, the head of the group representing state insurance commissioners said Friday.

“It threatens the solvency of the system and it threatens to spike the cost to policyholders across the board,” said Jim Donelon, president of the National Association of Insurance Commissioners (NAIC).

Donelon argued on CNN that the White House proposal is not logistically feasible and would be an administrative nightmare. He said premium prices have been set based on assumptions about what plans would be available.

“The problem is you can’t change the rules at the last minute when the game’s about to start,” he said. “And the rules have given benefits to lots of policyholders – guarantee issue, caps on coverage for older policyholders.”

The state insurance regulators would play a big role in implementing Obama’s fix. Donelon, who is also Louisiana’s insurance commissioner, said Friday there was near unanimous opposition among state regulators to the White House proposal.

The great moments of socialized medicine.