Letter: Obama's 'dry run' insurance failure

President Barack Obama speaks about immigration reform at

President Barack Obama speaks about immigration reform at a Las Vegas high school. Sharp shifts in the political landscape have put immigration reform tantalizingly close for the Obama administration and Cecelia Munoz, head of the White House Domestic Policy Council, who is leading the effort to provide a pathway to citizenship. (Jan. 29, 2013) (Credit: AP)

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Regarding "Obama admin winds down plan for 'uninsurables,' " [News, Feb. 16], I predicted that this would fail because claim projections made in 2010 were too optimistic and the $5 billion in funding inadequate to carry the program through the end of this year. That prediction came true when the Pre-existing Condition Insurance Plan (PCIP) announced that no new enrollees would be accepted after Feb. 15 in federally managed plans or after March 2 in programs managed by the states.

The PCIP plan was President Barack Obama's dry run, and he failed. Just imagine what will happen when Obamacare goes into effect on Jan. 1, 2014.

As of the end of 2012, there were appromimately 100,000 active enrollments in PCIP, with an administrative cost of $180 million. That represents a per-capita cost for enrollment of $1,800! That entire administrative cost comes out of the $5 billion earmarked for claims.

Underestimated claims, a terminated enrollment program for PCIP and uncontrolled administrative expenses. We are going 90 miles an hour on a dead-end road.

Kenneth E. Heard, Smithtown

Editor's note: The writer works as a life insurance underwriter.

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