We own one of the 1 million policies in California canceled by insurance companies. Our new premium will go from $623 per month to $963 for a plan with bronze coverage. There will be no subsidy.
My new premium has three fees added: a service fee, re-insurance fee and an exchange fee, amounting to $899.28 per year.
Multiply that by 1 million ACA-compliant policies that will replace the canceled policies, and it amounts to $899,280,000 that will be paid each year, just in California.
Obama made a brilliant move apologizing for saying I could keep my old plan, then shifted the decision to state regulators and insurance companies. Here the decision was made by a five-member board of Covered California. Not surprisingly, they voted no.
Is it fair to allow those with the greatest conflict of interest to make the call? What would be the decision if it was up to five people whose policies had been canceled?
Obama can now say, I tried to keep my promise, but they said no.
I have been in the insurance industry for 40 years, and can see both sides of the argument, but the ACA is a train wreck.
Editors note : Callas has four certifications as a charter financial consultant, chartered life insurance underwriter, registered health insurance underwriter and registered employee benefits consultant.