Skip to main content

The health care fix won't work

By Aaron Carroll
November 14, 2013 -- Updated 2148 GMT (0548 HKT)
STORY HIGHLIGHTS
  • Aaron Carroll: Obama's quick "fix" on insurance cancellations puts off needed changes
  • He says ACA mandates adequate care; policies without it must go away
  • He says "fix" just shifts blame to the insurance companies when they cancel policies
  • Carroll: To fix broken health care, we must accept changes. There are no easy answers

Editor's note: Aaron E. Carroll is a professor of pediatrics at the Indiana University School of Medicine and the director of its Center for Health Policy and Professionalism Research. He has supported a single-payer health system during the reform debate. He blogs about health policy at The Incidental Economist and tweets at @aaronecarroll.

(CNN) -- The implementation of the Affordable Care Act is not going well. First, the volume of people showing up to HealthCare.gov on October 1 completely crashed the site. Then, it turned out the data being passed up and back was completely corrupt. Then, millions of Americans began discovering that plans they "liked" were being canceled, and they were being told it was because of the Affordable Care Act.

President Obama announced an administrative fix to this problem on Thursday: an extension that allows insurers to keep people on health care plans that the Affordable Health Care act would not have allowed.

The cancellations had posed a real problem for the Obama administration, because they flew in the face of what many believe is a core promise of health care reform: that you could keep your policy if you liked it. Millions are finding out this isn't true. Those of us who have been in the weeds of health policy have known this for a long time. Most Americans did not.

Aaron Carroll
Aaron Carroll

The Affordable Care Act changes the way insurance is regulated. It declares that many services are now mandatory. This included a lot of preventive care, as well as maternity care. Any policies that don't provide these services will no longer be offered. Other policies had very low annual or lifetime limits. These, too, have to go away. Anyone who had one will need to find a new policy. It's very likely that newer policies, with more robust benefits, will be more expensive.

That will make many people unhappy.

We can argue that the new policies are still a good deal, or that much of that cost will be defrayed by subsidies, or that future protections to both beneficiaries and their families are worth the added cost, but that's somewhat beside the point. Many people feel like they were told they could keep their insurance, and now they think they have been lied to.

Obama knows the law is in trouble. Many Democrats feel like they took hard votes and stuck their necks out to support the law, and now that there's a perception that the executive branch has dropped the ball, their support is not as strong. There are a number of bills and fixes being debated.

Obama will delay expiration notices
'We will see millions more people sign up'
Obamacare numbers fail to impress

That won't be easy, though. That's in part because no insurance plan sticks around forever. Plans change from year to year, premiums change from year to year, coverage changes from year to year, and deductibles, copays, and co-insurance change from year to year. They always have. It has never been the case that you could be guaranteed that your plan would exist -- as it does today -- for as long as you would like. I've had plans I've liked canceled many times in my 10 years working at my current job.

One bill being put forth in the House would allow insurers to continue to offer plans that have been discontinued due to the Affordable Care Act. The problem with that is that many insurance companies don't want to continue to offer those plans indefinitely. They don't make sense financially. Therefore, passing this law won't stop millions of Americans from getting cancellation notices anyway.

A different bill in the Senate would force insurance companies to continue to offer those plans or leave the state entirely. If you thought the Affordable Care Act was a government takeover before, this bill is much, much worse. It would compel insurance companies to comply with a whole new host of potentially unprofitable regulations.

The truth of the matter is there is no easy solution here. Disrupting the current system isn't a bug of health care reform; it's a feature. It's what was supposed to happen. All reform will do so. Even Republican proposals, like Sen. John McCain's when he was running for president, to change the health insurance tax deduction, would have completely upended the employer-sponsored health insurance system. Then-Sen. Obama attacked him savagely for just that back in 2008.

It's fine for President Clinton and others to just "demand" this be fixed. Unfortunately, it can't be, at least not easily and not cheaply. Letting healthy people keep these plans (because most of those in the pre-Affordable Care Act individual market are healthier) and stay out of the exchanges will raise the premiums for everyone else, and thus the amount the government will have to pay in subsidies. Forcing insurance companies to continue to offer old plans in a new marketplace could wind up hurting their bottom line significantly.

Obama's administrative fix, much like the House bill, allow plans offered this year to remain in place if people want them. But that will just shift blame to the insurance companies when they cancel them. For many of the reasons above, they won't want to keep them going.

The real problem here, and one that few are addressing, is that the old health care system isn't that good. We wanted to change it. Doing so means that it, well, changes. If we liked our old health care system, we could keep it. But we didn't, and so at some point we're going to have to accept a new one.

Follow us on Twitter @CNNOpinion.

Join us on Facebook/CNNOpinion.

The opinions expressed in this commentary are solely those of Aaron Carroll.

ADVERTISEMENT
Part of complete coverage on
October 28, 2014 -- Updated 1237 GMT (2037 HKT)
Errol Louis says forced to choose between narrow political advantage and the public good, the governors showed they are willing to take the easy way out over Ebola.
October 27, 2014 -- Updated 1803 GMT (0203 HKT)
Eric Liu says with our family and friends and neighbors, each one of us must decide what kind of civilization we expect in the United States. It's our responsibility to set tone and standards, with our laws and norms
October 27, 2014 -- Updated 1145 GMT (1945 HKT)
Sally Kohn says the UNC report highlights how some colleges exploit student athletes while offering little in return
October 26, 2014 -- Updated 1904 GMT (0304 HKT)
Terrorists don't represent Islam, but Muslims must step up efforts to counter some of the bigotry within the world of Islam, says Fareed Zakaria
October 24, 2014 -- Updated 1302 GMT (2102 HKT)
Scott Yates says extending Daylight Saving Time could save energy, reduce heart attacks and get you more sleep
October 27, 2014 -- Updated 0032 GMT (0832 HKT)
Reza Aslan says the interplay between beliefs and actions is a lot more complicated than critics of Islam portray
October 27, 2014 -- Updated 1119 GMT (1919 HKT)
Julian Zelizer says control of the Senate will be decided by a few close contests
October 24, 2014 -- Updated 1212 GMT (2012 HKT)
The response of some U.S. institutions that should know better to Ebola has been anything but inspiring, writes Idris Ayodeji Bello.
October 22, 2014 -- Updated 2101 GMT (0501 HKT)
Paul Callan says the grand jury is the right process to use to decide if charges should be brought against the police officer
October 23, 2014 -- Updated 1619 GMT (0019 HKT)
Theresa Brown says the Ebola crisis brought nurses into the national conversation on health care. They need to stay there.
October 21, 2014 -- Updated 2235 GMT (0635 HKT)
Patrick Hornbeck says don't buy the hype: The arguments the Vatican used in its interim report would have virtually guaranteed that same-sex couples remained second class citizens
October 24, 2014 -- Updated 1630 GMT (0030 HKT)
The Swedes will find sitting on the fence to be increasingly uncomfortable with Putin as next door neighbor, writes Gary Schmitt
October 24, 2014 -- Updated 1632 GMT (0032 HKT)
The Ottawa shooting pre-empted Malala's appearances in Canada, but her message to young people needs to be spread, writes Frida Ghitis
October 26, 2014 -- Updated 0148 GMT (0948 HKT)
Paul Begala says Iowa's U.S. Senate candidate, Joni Ernst, told NRA she has right to use gun to defend herself--even from the government. But shooting at officials is not what the Founders had in mind
October 23, 2014 -- Updated 2208 GMT (0608 HKT)
John Sutter: Why are we so surprised the head of a major international corporation learned another language?
October 23, 2014 -- Updated 2154 GMT (0554 HKT)
Jason Johnson says Ferguson isn't a downtrodden community rising up against the white oppressor, but it is looking for justice
October 24, 2014 -- Updated 1621 GMT (0021 HKT)
Sally Kohn says a video of little girls dressed as princesses using the F-word very loudly to condemn sexism is provocative. But is it exploitative?
October 21, 2014 -- Updated 2006 GMT (0406 HKT)
Timothy Stanley says Lewinsky is shamelessly playing the victim in her affair with Bill Clinton, humiliating Hillary Clinton again and aiding her critics
October 23, 2014 -- Updated 1414 GMT (2214 HKT)
Imagine being rescued from modern slavery, only to be charged with a crime, writes John Sutter
October 21, 2014 -- Updated 1600 GMT (0000 HKT)
Tidal flooding used to be a relatively rare occurrence along the East Coast. Not anymore, write Melanie Fitzpatrick and Erika Spanger-Siegfried.
October 21, 2014 -- Updated 1135 GMT (1935 HKT)
Carol Costello says activists, writers, politicians have begun discussing their abortions. But will that new approach make a difference on an old battleground?
October 21, 2014 -- Updated 1312 GMT (2112 HKT)
Sigrid Fry-Revere says the National Organ Transplant Act has caused more Americans to die waiting for an organ than died in both World Wars, Korea, Vietnam, Afghanistan and Iraq
ADVERTISEMENT