In this case, I mean the Federal Government's ignorance of insurance.
Once before, the Federal Government's ignorance of insurance was laid bare, and its ignorance hurt many people. President Obama suggested before consulting the Health Insurance Companies that health insurers could just "reinstate" the health insurance policies they cancelled because those policies did not offer the coverages required by the Affordable Care Act a/k/a Obamacare. The health insurance companies, who were not consulted beforehand, did not respond favorably to this idea nor did many State Insurance Commissioners. See, e.g., the article posted on Insurance Claims and Bad Faith Issues weblog on November 17, 2013 and its postscript, posted on November 21, 2013.
Remember that last little bit: Many State Insurance Commissioners did not respond favorably to the Federal Government's suggestion, through the President, that cancelled health insurance policies could simply be "reinstated" in order to make good on President Obama's promise that we could all keep our previous health insurance if we liked it. The chief of the Federal Insurance Office has since requested that the authority to regulate insurance be taken away from the State Insurance Commissioners and given to him instead. See "Bad Faith Power Grab by Federal Insurance Office" posted on Insurance Claims and Bad Faith Weblog on Sunday, December 15, 2013.
Now, reportedly, the Administration is suggesting that health insurance companies can simply issue "retroactive" coverage effective as of January 1, 2014, which conforms to the ACA. The Administration is concerned with the mandate of Obamacare that people must have health coverage as of January 1, 2014. They want that to happen even if people have not paid their health insurance premiums by then.
The ACA is supposed to take effect on January 1, 2014 and the Administration once again wants to make that happen. Health insurance companies, who again were not consulted in advance, did not respond favorably to the idea that insurance coverage could or should be issued "retroactively".
Anyone who knows anything about insurance knows this much: There is no such thing as "insurance" which retroactively covers loss. That is simply not "insurance". It may be a wager, like the deals that are made on Wall Street, but it is not insurance.
© 2013 by Dennis J. Wall. All rights reserved. No claim to original U.S. Government works.
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