This is probably the most bizarre reason that millions of people have lost their health insurance coverage since Obamacare was rolled out.
According to the “De Minimus Variation,” (catchy title eh?) plans must fall within 4 narrow bands of the amount they pay for.
The actual legislation can be found on page 36 of the Federal Register, Vol. 78, No 37. and reads as follows:
§ 156.140 Levels of coverage. (a) General requirement for levels of coverage. AV, calculated as described in § 156.135 of this subpart, and within a de minimis variation as defined in paragraph (c) of this section, determines whether a health plan offers a bronze, silver, gold, or platinum level of coverage. (b) The levels of coverage are: (1) A bronze health plan is a health plan that has an AV of 60 percent. (2) A silver health plan is a health plan that has an AV of 70 percent. (3) A gold health plan is a health plan that has an AV of 80 percent. (4) A platinum health plan is a health plan that has as an AV of 90 percent. (c) De minimis variation. The allowable variation in the AV of a health plan that does not result in a material difference in the true dollar value of the health plan is +- 2 percentage points.
Just as the video describes it.
According to Obamacare, your plan is “substandard” not only if it is not good enough, but also if it is “too good,” or in-between one of the four allowable ranges.
Where the video gets it wrong, is in saying that it’s not the insurance companies fault. Anyone who seriously thinks that the 1000 page Obamacare bill was drafted by politicians working late into the night is delusional.
Obamacare was written by the insurance industry for the insurance industry and sold to the American public by the spokesperson in chief.
Thanks to Obamacare, insurance providers now have a captive audience. They all understand that no other provider can offer a plan substantially better or cheaper than their own. It’s the law.
Yet according to the teleport reader in chief, Obamacare was supposed to increase competition!