In this three and a half minute video, Robert Graboyes of the Mercatus Center at George Mason University explains a major reason why millions of health insurance plans were – and will be – cancelled due to a convoluted provision in Obamacare.
As Graboyes puts it in the video:
“There’s a bizarre reason why millions of Americans saw their health plans cancelled in 2013 and, millions more will lose their plans in years to come.
Insurance coverage for Americans will remain in permanent turmoil because the Affordable Care Act (ACA) requires that all plans fit within cookie-cutter designs called “metallic tiers.” (The tiers—bronze, silver, gold, and platinum—refer to the percentage of medical expenses a particular plan pays.) Families may have to switch plans repeatedly because, as circumstances change, a plan that fits within a tier one year may not fit in any tier in a later year.”