And so it begins.

Today, one part of Obama’s new health care law kicked in. It’s a part that, if enforced literally, is likely to eliminate so-called “mini-med” insurance. As I wrote:

But the reason the mini-meds are so affordable is exactly the same reason the plans are finding themselves persona non grata under the Obamacare system. The plans are defined by their low annual limits on benefits. These limits are well below the new federally mandated limits, which go into effect Thursday. The cap will rise to $750,000 and will continue to rise in subsequent years and then eventually will disappear until there is no cap.


Far from providing Americans with affordable health insurance, the Obamacare plan is mortally wounding one of the last sources of such insurance. The ironic effect of a law that Obama said would extend insurance to the uninsured is to make insurance for low-income Americans less affordable and, therefore, cause many of them to go without insurance.


The mini-meds cannot promise absolute coverage in the case of catastrophic health problems, and they were never intended to. That’s one problem with such plans. But which is worse: having insurance that doesn’t cover all catastrophic expenses or having no insurance at all?