President Barack Obama’s temporary fix to the health care law is bad medicine, according to insurance trade groups and health care industry experts at the Kellogg Graduate School of Management.
“In the long term, this is just going to make for all kinds of turmoil in the exchanges,” said David Dranove, professor of health industry management at Kellogg.
He made the comments after Obama announced a plan to allow people in individual coverage plans whose policy was cancelled because of the Affordable Care Act to re-enroll in those plans for a year, giving insurers the green light to continue selling them for that period.
“The whole idea of this was to get everybody into the exchanges right away, so you’d have big risk pools, a big cross section of risks,” Dranove said. “The plans would be stable. The insurers could make enough money so they could continue to want to participate.