“Obamacare Great” -- Rebuttal
Claim / FactsVO: “News reports say 300,000 health plans cancelled.”
SUPER: 300,000 Health Plans in Florida Canceled – Some Floridians losing health insurance plans.
The St. Augustine Record, October 23, 2013 / Sen. Rubio Made Similar Claim, PolitiFact Called “Mostly False”
In October 2013, PolitiFact rated a similar claim by Senator Marco Rubio, that 300,000 people would lose their health coverage, as “mostly false.” [PolitiFact, 10/25/13]
See Appendix A
AP: Ad Relies on Information that “Is Not Accurate”
On the morning the ad was released, Florida Associated Press reporter Gary Fineout tweeted the following:
@fineout: The campaign of @FLGovScott launches new $2mil ad going after @CharlieCrist over Obamacare http://bit.ly/1lgAO4H [twitter.com, 3/24/14]
@fineout: But new Let’s Get to Work TV ad from @FLGovScott relies on information regarding cancellation of health plans that is not accurate [twitter.com, 3/24/14]
See Appendix E
AP: Most Customers have “Kept Their Plans”
On the morning the ad was released, Florida Associated Press reporter Gary Fineout tweeted the following:
@fineout: Fla. Blue spokesman this month told @kkennedyAP that most of those initially notified about losing their plan have “kept their plans” [twitter.com, 3/24/14]
See Appendix B
FL Blue Senior VP: “We are not Terminating Anyone’s Coverage.”
In October 2013, Jon Urbanek, a senior vice president at Florida Blue told the Florida Times Union, “This is more of a transition…We are not terminating anyone’s coverage.” [Florida Times Union, 10/23/13]
See Appendix B
The Phrase “Some Floridians losing health insurance plans” Never Appears in Article
The ad included the line “Some Floridians losing health insurance plans” under the St. Augustine Record’s masthead implying it is a quotation from the article. However, this phrase never appeared in the article. [St. Augustine Record, 10/23/13]
See Appendix C
From the ad:
VO: “Obama says patients may lose their doctors.”
SUPER: “They’re going to have to make some choices, and they might end up having to switch doctors…”
-President Obama (March 14, 2014) / Obama Said Patients Might Switch Doctors in Order to Save Money
In March 2014, President Obama said, “For the average person, many folks who don’t have health insurance initially, they’re going to have to make some choices. And they might end up having to switch doctors, in part because they’re saving money.”
The President’s quotation makes clear that patients could still see whatever doctor they chose but may decide to change in order to receive a reduced cost. [youtube.com @1:00, 3/14/14]
See Appendix D
VO: “The federal government says less work hours for American jobs.”
SUPER: “Obamacare will drive 2.5 Million Americans out of the workforce.”
-CBO, February 4, 2014 / PolitiFact Ranked Similar Claim “Mostly False”
In February 2014, PolitiFact called an ad “mostly false” that was sponsored by the National Republican Congressional Committee arguing “Obamacare will cost our economy up to 2.5 million jobs.”
According to PolitiFact, “the CBO report says that with Obamacare in place providing greater access to insurance on the individual market and subsidies to help pay for it, some Americans will decide on their own to work less.” [PolitiFact, 2/14/14]
See Appendix E
Headline: “CBO: Guys, We Didn’t Say Obamacare Would Cost 2.5 Million Jobs”
In February 2014, the Congressional Budget Office issued an official rebuttal “to the Republican talking point that Obamacare would cost 2.5 million American jobs.” In an FAQ explanation of their report, CBO director Doug Elmendorf was asked if 2.5 million people will lose their jobs by 2024 because of the health care reform law. He replied, “No, we would not describe our estimates in that way.” [talkingpointsmemo.com, 2/10/14]
See Appendix F
Decline in Work Hours Due to People Choosing to Work Less
In February 2014, Reuters reported that Jason Furman, Chair of the White House Council of Economic Advisers, said “It’s not that the businesses are cutting those jobs.” The CBO report showed an impact on labor supply rather than demand for workers from employers. [Reuters, 2/04/14]
See Appendix G
The Washington Post made a similar point writing, “More than 2 million Americans who would otherwise rely on a job for health insurance will quit working, reduce their hours or stop looking for employment because of new health benefits available under the Affordable Care Act...” [Washington Post, 2/04/14]
See Appendix H
Quoting Phrase that Does Not Exist in CBO Report
The ad supposedly quotes a CBO report claiming “Obamacare will drive 2.5 million Americans out of the workforce.” This phrase never appeared in the CBO report. [CBO, 2/04/14]
See Appendix I
From the ad:
“Obamacare Great” -- Rebuttal Backup
Appendix A: PolitiFact, 10/25/13
In Florida, “300,000 people are going to lose their individual coverage because of Obamacare. Now those people next year, they don’t have health insurance.”
Published: Friday, October 25th, 2013 at 2:10 p.m.
Written by: Amy Sherman
Researched by: Amy Sherman
Edited by: Angie Drobnic Holan
http://www.politifact.com/florida/statements/2013/oct/25/marco-rubio/marco-rubio-said-florida-300000-people-are-going-l/
Marco Rubio on Tuesday, October 22nd, 2013 in an interview on “The O’Reilly Factor.”
Rubio says 300,000 will lose their individual health insurance coverage under Obamacare and won’t be able to enroll in new plans
Mostly False
Recent letters to 300,000 Floridians from Florida Blue, a division of Blue Cross Blue Shield, have injected new vigor into claims that the health care law means consumers will lose their insurance.
“The issue of Obamacare is about a much broader agenda to inject more government control over our lives and over our economy,” said Sen. Marco Rubio, R-Fla., on Fox’s The O’Reilly Factor. “On this very day in Florida, it was announced that 300,000 people are going to lose their individual coverage because of Obamacare. Now those people next year, they don’t have health insurance. They are going to owe the IRS money in the form of a fine. Where are they supposed to go now and buy that health insurance if the website isn’t working, if Consumer Reports is telling people to avoid the website?”
Rubio’s concerns about the website referred to healthcare.gov, the federal government’s online marketplace for health insurance. The website has been plagued with problems and hasn’t been functioning properly since its debut on Oct. 1.
Rubio made his claim during a week when the announcement by Florida Blue affecting 300,000 policy holders received much attention. (U.S. Rep. Tom Rooney, R-Fla., and former House Speaker Newt Gingrich made similar statements related to Florida Blue.)
We asked Rubio’s office for evidence to support his claim. “This is pretty simple,” said Rubio’s spokesman Alex Conant in an email to PolitiFact Florida. “Question: can any one of the 300,000 people keep their current health plan? Answer: No.”
We decided to check Rubio’s claim: Are 300,000 people going to lose their individual coverage because of Obamacare? And will they face the consequences Rubio suggests?
Florida Blue’s letters
On Oct. 21, Kaiser Health News reported that health plans were sending hundreds of thousands of cancellation letters to people who buy their own coverage.
We found the news repeated by several news outlets and blogs, with headlines such as this one in the Miami Herald’s Naked Politics blog: “Who’s to blame for the 300,000 policy purge? Florida Blue or Obamacare or both?”
In response to the news coverage, Florida Blue issued a statement:
“The Affordable Care Act mandates that all health insurance coverage packages provide 10 categories of essential health benefits. Because some plans offered by all insurers did not include all of these new services, they will no longer be available. Approximately 300,000 current Florida Blue members are enrolled in plans that will not meet these new benefit requirements.
“Florida Blue is proactively communicating to these members to help them understand how this transition affects them. Prior to their 2014 renewal date, each member will receive a letter that instructs them to contact Florida Blue to review their migration options. These new plans will offer members access to more comprehensive benefits in 2014.
“It is important to note that a person’s individual situation will be the key driver of what they will pay for coverage under the ACA. Subsidies will be available in the marketplace to lower the cost of coverage for eligible individuals, and the amount an individual will pay could vary significantly once his or her specific age, area in which they live, smoking status, family size, and income are factored in.”
The Miami Herald’s Public Insight Network obtained copies of letters received by Florida Blue consumers. The letters stated that due to the Affordable Care Act, the consumer’s particular plan “will be closed” and recommended another Florida Blue plan.
“To help ensure that you have continuous health care coverage, you’ll be enrolled in this health plan effective Jan. 1, 2014, unless we hear from you by Nov. 1, 2013.”
The letters stated that consumers could choose a different Florida Blue plan.
“We’ll help you find a plan that’s right for you,” the letter stated.
A spokesman for Florida Blue, Mark Wright, told PolitiFact Florida that when it comes to getting new plans, “nobody is throwing anybody off a cliff.”
Not everyone’s policies expires on Jan. 1, those expirations will happen throughout the year. Consumers have to be notified that they have to choose a new plan 90 days before their plan expires.
Jon Urbanek, a senior vice president at Florida Blue, told us the company intends to offer people with expiring policies a range of options. Depending on where they live and other factors, “most people will have a choice of somewhere around 40 plans to choose from,” Urbanek said.
Health care experts
We sent Rubio’s statement to a few health care experts to see if they thought it was accurate. What we generally heard was that while policy holders are losing that particular insurance plan, they do have other options.
“There is some truth to saying that they are losing their coverage plans they are now in -- they are no longer available,” said Timothy Jost, a law professor at William and Lee and co-author of the casebook Health Law. “Presumably those are plans with very high deductibles, high out-of-pocket costs.”
However, “it is also inaccurate saying people are losing coverage.”
Christopher J. Conover, a health research scholar at Duke University and adjunct scholar at the conservative American Enterprise Institute, told PolitiFact Florida that these consumers are losing their current health plan.
“Most of your readers might interpret ‘losing coverage’ as meaning these individuals will become uninsured. Some in fact will be, but not the majority....,” he said.
Conover said that the same situation is happening to millions of consumers nationwide.
“This eventually will touch millions of Americans,” he told PolitiFact Florida.
Our ruling
Rubio said, “300,000 people are going to lose their individual coverage because of Obamacare. Now those people next year, they don’t have health insurance.”
Rubio was referring to letters Florida Blue started sending to consumers in the individual market in August. The letters do tell consumers that their particular plan will end due to the Affordable Care Act. That’s because the plans typically don’t offer the comprehensive coverage that is required under the new law.
However, the letters also state that consumers will have “continuous health care coverage” and assigned them a particular plan, or gave them the option to contact Florida Blue and choose another plan. So their coverage is not dependent on being able to buy insurance through healthcare.gov, the government’s online marketplace.
We rate this claim Mostly False.
Appendix B: Twitter.com, 3/24/14
@fineout: The campaign of @FLGovScott launches new $2mil ad going after @CharlieCrist over Obamacare http://bit.ly/1lgAO4H [twitter.com, 3/24/14]
@fineout: But new Let’s Get to Work TV ad from @FLGovScott relies on information regarding cancellation of health plans that is not accurate [twitter.com, 3/24/14]
@fineout: Fla. Blue spokesman this month told @kkennedyAP that most of those initially notified about losing their plan have “kept their plans” [twitter.com, 3/24/14]
Appendix C: St. Augustine Record, 10/23/13
Florida Blue to cancel 300,000 policies over Obamacare
Posted: October 23, 2013 - 6:53am
By Matt Dixon
Morris News Service
http://staugustine.com/news/florida-news/2013-10-23/florida-blue-cancel-300000-policies-over-obamacare#.UzBRQIUXHpc
Tallahassee - Citing costs associated with the federal Affordable Care Act, Jacksonville-based Florida Blue is canceling 300,000 individual policies.
Florida Blue, the state’s largest health insurer, says the move is to offset the new health care law’s requirement that things like maternity and newborn care, mental health, substance abuse services, and emergency services be covered by individual and small market plans.
Kaiser Health News reported that many canceled plans from Florida Blue, and other insurers across the country, fall short of the requirements laid out in the Affordable Care Act, commonly referred to as ObamaCare. The organization says many were purchased after the law was passed in 2010, so insurance companies knew they would be temporary policies.
Impacted Florida Blue customers will be notified by mail.
“We will provide our members recommendations for new plan options, and encourage them to contact us so we could help determine their best course of action,” Mark Wright, a Florida Blue Spokesman, said in a statement.
Wright said officials who could answer specific follow-up questions were not in the office.
As a result, information related to the amount the cancellations will save the company, how many people have enrolled in company plans through the Affordable Care Act, and updated numbers on how much the company thinks the new law will cost was not available Tuesday.
During spring’s legislative session, Florida Blue lobbyists told lawmakers they thought the Affordable Care Act would cost the company $110 million.
In September, the Office of Insurance Regulation estimated that ObamaCare would boost Florida Blue premiums by 31 percent under Obamacare, or $118-per-month. That’s slightly less than the 35 percent overall increase the office estimated would occur under the new health care law.
Those state numbers did not include income-based federal subsidies offered through the plan. It’s estimated that 3.2 million of Florida’s 3.5 million uninsured will be eligible for the subsidies.
During the legislative session, Florida Blue lobbyists used the uncertainty under ObamaCare as a key message when lobbying on key issues.
That led to the defeat of a proposal to ax an insurance industry tax. Florida Blue estimated that plan would have cost it $32.5 million. ObamaCare was also the stated reason Florida Blue used when pushing language that allowed it a new type of expansion, company officials said. That restructure would allow the company to own other not-for-profit insurers and corporations in Florida.