McCaughey: 'A Million or More' Obamacare Subscribers Will Default
(CNSNews.com) - A leading Obamacare critic sees trouble ahead for people who signed up for health insurance on the new government exchanges.
First, even the insurance companies that issue the plans are worried about "public pushback" from rising insurance premiums, Betsey McCaughey, the former lieutenant governor of New York and author of the book "Beating Obamacare," told Fox News's Neil Cavuto on Monday.
"That's only part of the bad news," she said. "You're also going to see a million people or more default. In other words, they have paid their first premium, but when they discover what it really means to have a $3,000 or $5,000 deductible on their plan, they go to their doctor again and again and have to pay full freight, even though they're paying a premium, they're going to stop paying their premium.
"Another big problem ahead is the 25 million to 30 million people who currently get on-the-job coverage are going to lose it in the coming months, when their employers realize that they're not going to be able to renew those old plans and they're stuck between the very costly Obamacare plans or sending their workers and their families on to the exchanges.
"And finally you are going to hear a lot of desperation from cancer patients when they discover these Obamacare exchange -- Obamacare exchange plans won`t let them go to any specialty cancer hospitals, even though the data show that, for example, women with ovarian cancer live longer when they`re treated at a high-volume cancer hospital."
According to McCaughey, the CEOs of Aetna and CareFirst-Blue Cross/Blue Shield have warned about double- and even triple-digit premium increases in the next few months.
McCaughey spoke to Fox News after the Congressional Budget Office released a new report estimating that the health care law's coverage provisions will result in
lower net costs to the federal government. The estimated net costs for 2014 -- $36 billion, $5 billion less than the previous projection for the year --stem almost entirely from spending for subsidies that are to be provided through insurance exchanges and from an increase in spending for Medicaid.
McCaughey has said that the Affordable Care Act was designed from the very beginning to vastly expand Medicaid, a single-payer system. Those plans went awry when the U.S. Supreme Court ruled that it's up to the states to expand their Medicaid programs.