US President Barack Obama
has announced a one-year reprieve for millions of Americans facing
cancellation of their health insurance policies under his embattled
healthcare law.
He said insurers could extend individually purchased plans that would otherwise be cancelled.
While pushing for the law's passage, he vowed people with individual plans who liked their policies could keep them.
"We fumbled the rollout on this healthcare law," he said.
Growing impatience
In recent weeks insurance companies have sent
letters to their customers announcing cancellation of coverage that does
not meet the Affordable Care Act's strict new requirements for policies
sold on the individual private market.
While Mr Obama said on Thursday that those people could keep
their old plans, he encouraged them to shop around for better, more
cost-effective coverage.
Under the change announced on Thursday, insurance companies
that extend those plans will be required to inform customers of which
medical care they do not cover, and inform them that other insurance
options offering more coverage may be available.
Mr Obama also said he expected to have to "win back"
credibility and the "confidence" of the American people in the wake of
ongoing issues with the health law, his signature domestic policy
initiative.
"I completely get how upsetting this can be for many
Americans," particularly after his assurances that everyone who wanted
to keep their plans would be able to, he said. "To those Americans: I
hear you loud and clear."
Ahead of Mr Obama's announcement, Republican House Speaker
John Boehner insisted it was time to "scrap this law once and for all".
"You can't fix this government-run health care plan called
Obamacare,'' he said of the law, which relies mostly on health insurance
plans offered by private, for-profit companies.
"It's just not fixable."
A 'burden'
At the White House briefing room, Mr Obama acknowledged the
flaws with the law's rollout had put a "burden" on his fellow Democrats.
The American public has remained divided over the law since
its 2010 passage and subsequent rollout. Republicans, who were
unanimously opposed to the law and have tried to undermine it at every
turn, have sought political advantage in every reported problem with the
law.
The law, known to both sides as "Obamacare", is certain to be an issue in the 2014 mid-term elections.
Before Mr Obama announced the change, the White House had
said it was against proposals that would allow insurers to continue
selling medical coverage that did not offer the level of benefits
required under the law.
"The old individual market was not working well," Mr Obama
said on Thursday. "And it's important that we don't pretend that somehow
that's a place worth going back to."
Meanwhile, the Obama administration is still struggling to
fix ongoing glitches with the healthcare.gov website, established by the
law to enable consumers who do not get health insurance from their
employers or from the government to shop for private plans.
Among other issues, the site has been plagued by long wait
times to sign up for an insurance plan and serious flaws on the back end
where customers' data are processed and sent to insurance companies.
The problems have proven so severe that fewer than 27,000
people in 36 US states have successfully enrolled in healthcare programs
on the site since it launched on 1 October.
The 1 October launch of the insurance marketplace websites
run by the federal and state governments was the culmination of more
than three years of political combat in Washington over the Patient
Protection and Affordable Care Act, signed into law by Mr Obama in 2010.
The law establishes the healthcare.gov medical insurance
marketplace website and others run by the states, bolsters coverage
requirements, mandates that people carry insurance or pay a tax penalty,
and offers subsidies to assist in the purchase of the insurance, among
other provisions