Blog ››› ››› SIMON MALOY
The coverage of the Affordable Care Act's troubled rollout has been marked by a spate of overheated and sensationalist health plan "cancellation" stories spotlighting consumers who have been told by their insurance companies that they're being moved to more expensive plans. In most cases these stories rely on a lack of context and withhold key details about how these consumers can potentially benefit under the law. They also demonstrate a worrying lack of skepticism towards the behavior of the insurance companies.
The latest example comes from the New York Times, which reports on three average Americans who are being "forced out of their existing health insurance plans" as the ACA takes effect. "One expects to pay more. One expects to pay less. And one is just trying to figure it all out," the Times reports. At first glance it looks like a neat cover-all-the-angles trifecta. When you dig a little deeper into the article, though, some warning signs start flashing.
The person who expects to pay more is Charles Nance, a 57-year-old "home inspector in suburban St. Louis." Nance was informed by his current insurer, Anthem BlueCross BlueShield, that his current plan is being dropped because it doesn't comply with the ACA's minimum standards, so the company was going to sign him up for a considerably more expensive plan "that would cost twice as much" per month in premiums.
That sounds pretty bad! But then a few more details creep in, buried at the end of the article. "He said he does not qualify for federal subsidies," the Times reported on Mr. Nance, "and has had difficulty signing onto the online marketplace to evaluate his options." And then there's this: "For now, he has purchased a one-year plan through United Healthcare that is similar in price and features to his existing plan." He "expects to pay more," but he's already found another plan "that is similar in price and features"? So he's not actually paying more. He just expects to pay more under the ACA, even though he hasn't been able to actually evaluate the options available to him under the law.