It is factually accurate to state that Obama’s claim that “most people” would be able to keep their existing health insurance coverage under Obamacare was inaccurate if you’re looking at people with individual policies. (Most people insured through their employers will, in fact, continue to be.) It is even factually accurate to say that Obama kept claiming that even after he should have known better — i.e., he lied on that point, at least for a while.
But economist Dean Baker adds some relevant context that, while not getting Obama off the hook for saying stuff he should have known to be false, also makes clear that insurers also played a role and that policy holders shouldn’t have been totally surprised:
[The Washington Post’s “Fact Checker” columnist, Glenn Kessler] presents evidence showing that 48.2 percent of individual plans are in effect less than 6 months and 64.5 percent are in effect less than year. Extrapolating from this evidence on the rate at which individuals leave plans, Kessler calculates that less than 4.8 percent of the people in the individual market have a plan that would be protected by this grandfather provision. …
… while Kessler is correct that the grandfathering protects relatively few people because policies tend to be short-lived, this data also raises an issue about the pain caused by earlier than expected cancellations. Kessler’s data show that almost half of the plans will be held by people for less than six months and almost two-thirds will be held for less than a year. This means that most of the people being told that their plans are being cancelled probably would have left their plans in the first half of 2014 anyhow. While no one wants to buy insurance more than necessary, it hardly seems like a calamity if someone expected to leave their policy in March and will now have to arrange insurance through the exchange for two months.
Furthermore one has to ask about the role of insurers in this process. Kessler’s data imply that more than three quarters of the people in the individual market signed up for their policies for the first time in the last year. Didn’t insurers tell people at the time they sold the policies that these plans would only be in effect through the end of December because they did not comply with provisions in the ACA? If the insurers did inform their clients at the time they purchased their policies then they would not be surprised to find out now that they will need new insurance. If the insurance companies did not inform clients that their plans would soon be terminated then it seems that the insurers are the main culprits in this story, not the Obama administration.
UPDATE, 11/13/13: Just a thought: Insurance companies have known for three years what the standards for policies would be under the ACA. They had plenty of time to prepare. In many cases, however, they chose to screw consumers and blame it on Obama.