In another indication of the chaos surrounding the White House and ObamaCare, HHS issued new ‘requests’ of insurance companies, including the bizarre suggestion that they issue ‘retroactive’ insurance.
What exactly is “retroactive insurance?”
Sebelius “strongly encouraged” insurers to pay for prescriptions in January that were covered under policyholders’ old plans but not under their new Obamacare plans. She requested that insurers bill some out-of-network care as in-network care. But the most unusual request by far was that insurers allow people to “retroactively” sign up for coverage effective January 1 anytime next month.
“We’re encouraging [insurers] to offer retroactive coverage,” Michael Hash, director of HHS’s office of health reform, told reporters on a Thursday afternoon conference call. “For example, to allow someone who signs up and pays on January 5 to get coverage with a retroactive start date of January the first.”
In other words, they want insurance companies to cover people under some sort of honor system. But this makes the concept of insurance moot. If you could buy insurance with a retroactive start date, why wouldn’t you just wait until you got sick or injured before you purchased? And how are insurance companies supposed to know who is going to eventually enroll and who is not? Here’s some excellent coverage at Fox addressing some of these same concerns: