80 to 100 Million Could Lose Current Coverage

An analyst from McKinsey & Company knocked the socks off insurance company executives yesterday when she told them the new health law will bring “fundamental disruption to the health care economy” — so much so that “something in the range of 80 to 100 million individuals are going to change coverage categories in the two years post-2014.”

They will lose their employer coverage, move into exchanges, or go on to Medicaid. This would be an extraordinary disruption that will cause widespread outrage.

Allisa A. Meade of McKinsey didn’t stop there in saying the markets are going to be upended. She told the meeting of America’s Health Insurance Plans in Chicago on Thursday that the health law also will create a subset of 30 to 40 million people who could be called an ?outlaw market? of Americans who choose not to buy coverage and to pay a tax penalty instead.

According to Congressional Quarterly, ?Meade said that population is likely to be healthier and wealthier than other Americans and that it might offer an economic opportunity to plans to sell low-cost products.

“It’s not clear, however, to what extent such plans would be permitted under the law. Another potential concern would be a possible stigma attached to selling plans to people who do not comply with the health law,” John Reichard of CQ reported.

This is unbelievable! Is ObamaCare going to create a nation of outlaws?

McKinsey also predicts many employers will drop coverage because it will make more economic sense to pay a penalty that is lower than the cost of providing coverage. Depending upon how many do, the individual market for health insurance could grow by up to 300 percent. Whatever actually happens, Meade said companies in essence must start from scratch in their individual insurance divisions because that market will change so dramatically.

It was about health care! It has been astonishing that Democrats still refuse to acknowledge the message the voters

sent in last Tuesday?s election. Over and over, they say that health care really wasn?t that much of an issue.

Soon-to-be-ex-Speaker Nancy Pelosi says that voters are just mad because they don?t have jobs.

But even Democratic pollster Pat Caddell said health care was key to his party?s loss of at least 60 seats in the House. He

told FOX News: ?The economy, as important as it was, was not the decisive factor this election. Health care was,? he said.

?It is…health care [that] killed them,? Caddell continued. ?The American people found this a crime against democracy…

they want it repealed, and this issue is gonna go on and on.?

What will Republicans do next year? They know they are staring squarely into President Obama?s veto pen, so they are

preparing measures that delay, defund, and begin to dismantle the legislation.

Members of Congress are trying to forestall the wreckage to:

Isolate and repeal piece-by-piece many of the unpopular ObamaCare provisions, such as the mandate that all Americans
purchase government-approved insurance.
Form coalitions with conservative Democrats to build veto-proof majorities to get rid of the worst of the worst in
this law.
Push to give states maximum flexibility in how they comply. The new governors elected November 2, as well as many of
those already in office, will become valuable allies as the march toward repeal unfolds.

The administration is working to develop regulations to push through the law?s mandates as quickly as possible, and Congress

will be showcasing the worse of these regulations and working to stop them.

As Republicans try to stall implementation of the law, they must simultaneously articulate their own solutions to the very

real problems in our health care sector.

Once the American people understand this law in vivid detail and see the unfolding consequences, the movement for repeal will

continue to grow.

A bit of good news: Congressional Quarterly reports that an HHS official has signaled the Utah Health Exchange

model could meet the test for a federally-approved exchange.

Joel Ario, the HHS official who is overseeing the creation of health insurance exchanges under the health overhaul law,

signaled Wednesday that guidance his office will release ?within a few weeks? will encourage states to experiment with the

menu of plans they will offer.

Speaking to the AHIP meeting in Chicago, Ario noted two different types of exchanges that illustrate opposite ends of the

spectrum in terms of the menu of plans offered: Utah and Massachusetts. He suggested that the guidance will permit both

approaches.

I believe the important thing for states is to set up exchanges that work for them and not try to conform to the federal

straightjacket. The lightly-regulated Utah Health Exchange gives them a model to create a marketplace for insurance that can

be purchased with pre-tax dollars and that allows portability, and that provides the cost advantages of group purchasing for

small businesses and individuals.

Amicus Brief: Senate Republican Leader Mitch McConnell is filing a friend-of-the-court brief in the multi-state lawsuit,

led by Florida, challenging the constitutionality of the health overhaul law.

Sen. McConnell argues in his brief the requirement that nearly all Americans buy insurance ?dramatically oversteps the bounds

of the Commerce [Clause] which has always been understood as a power to regulate, and not to compel, economic activity.? He

also argues that if the mandate is deemed constitutional, there will no longer be any real limit on Congress? power to

regulate citizens? activity.

He invites other legislators to join him in the amicus filing ? a move that will demonstrate to the courts that the

legislative branch also has serious, serious problems with the law.

Hallelujah! And on a cultural note, this is our absolute FAVORITE video of the week: More than 650 choral singers

surprised shoppers at Macy?s in Philadelphia on Oct. 30 with a magnificent performance of Handel?s Messiah. Here?s the link. You

will love this. What a great country this is!

CLIP OF THE WEEK

What Does a Republican House Mean for Health Care Reform?

In this NewsHour video, Jim Capretta and others discuss the recent election and health reform, and the possibility of repealing the health law.
Watch now
>>

More video and audio clips are available on the Health Reform Hub >>

Events

SAVE THE DATE!

Challenges and Changes: The Next Chapter in the Health Reform Debate
Galen Institute, American Action Forum, and Institute for Policy Innovation Event
Tuesday, November 30, 2010
9:30am – 2:00pm
Washington, DC

Physician Workforce: The Next Generation
Alliance for Health Reform Event
Monday, November 15, 2010
12:00pm ? 1:45pm
Washington, DC

Will recent health reform policy changes provide coverage to help Americans stop

smoking?
American University Webinar
Tuesday, November 16, 2010
9:15am EST

Have You Addressed the Compliance Requirements in the New Health Care Reform

Law?
HighRoads Webinar
Wednesday, November 17, 2010
12:00pm EST

Free to Choose Medicine: How Faster Access to New Drugs Would Save Countless

Lives and End Needless Suffering
George Washington University Regulatory Studies Center and Competitive Enterprise Institute Luncheon
Friday, November 19, 2010
12:00pm – 1:30pm
Washington, DC
To register, email RegulatoryStudies@gwu.edu.

Policy Changes for the New Congress
American Enterprise Institute and National Review Institute Event
Monday, November 22, 2010
9:15am ? 12:30pm
Washington, DC

Patient Safety and Comfort: the Challenges of Switching Medicines
Stockholm Network Event
Tuesday, November 30, 2010
Brussels, Belgium

80 to 100 Million Could Lose Current Coverage

CLIP OF THE WEEK

What Does a Republican House Mean for Health Care Reform?

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