President Obama announced an addendum to his troubled health care plan earlier today. Under the new plan, Americans with insurance policies that were canceled for not meeting new guidelines will now be able to renew those plans for one more year. The insurance companies will be required to disclose information about other plans and benefits that will be lost under consumers’ existing plans.
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The announcement comes after a month of harsh criticism for Obamacare and the implementation of a new website to sign-up for it. Health and Human Services Secretary Kathleen Sebelius announced yesterday that only 100,000 American’s had signed up for insurance in October, while the government had expected the number to be closer to 500,000.
Peter Schiff, CEO of Euro Pacific Capital, has been one of the many critics of Obamacare. He tells Breakout, “The rollout of the website is likely the high water mark for Obamacare because it’s all downhill from here,” adding, “What’s worse than the marketing is the product they’re trying to sell.”
Schiff notes that the problem with the law comes down to cost. “The reason it’s so expensive is because of all the government involvement,” he argues. “Instead of getting government out of the way so the free market can bring down the cost, the government went all in and now the costs are going to skyrocket.”
It remains to be seen whether the adjustment to the plan announced by the President today will have any substantial impact on those costs and the adoption of the plan by consumers. But there’s a third concern for the President: whether it will quiet a growing chorus of critics from within his own party.
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Schiff points out that any action taken by Democrats to divorce themselves from the reform has more to do with politics than the actual substance of the law. “Depending on how worried some of the Democrats are with respect to their re-election,” Schiff says, “that’s going to determine how quickly they are willing to throw Obama and his entire scheme under the bus.
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