One day after US presidential hopeful Ted Cruz told college students in New Hampshire that he had no health insurance because US President Barack Obama’s healthcare law caused the cancellation of his coverage, the Republican presidential candidate’s campaign walked back that assertion late Friday.
Contrary to what Cruz, a top contender for the Republican Party nomination, on Thursday said: “I don’t have healthcare right now” — it turns out the US Senator from Texas and his family appear to be insured after all.
A campaign spokeswoman said Cruz’s insurance policy was indeed canceled, but that he did not realize his provider, Blue Cross Blue Shield of Texas, had automatically transitioned him and his family onto a new policy.
Here is the statement provided to Bloomberg Politics by Cruz campaign spokeswoman Catherine Frazier:
“On December 31, Blue Cross canceled the PPO [preferred provider organization] health insurance policy covering the Cruz family. That plan was purchased on the individual market, using a private insurance broker, with no government funds. At the time, the broker informed Senator Cruz that the plan was being canceled. The broker did not inform him that Blue Cross had automatically enrolled the family in another policy, an HMO [health maintenance organization] with far more limited coverage. Based on this information, Senator Cruz believed the family was uninsured and asked the broker to pull quotes immediately for a new policy.
“The Cruz family is currently covered by a Blue Cross HMO and will be covered by a Humana PPO effective March 1. The new premium — for coverage similar to what the Cruz family had last year — is roughly 50 percent higher,” she said.
Cruz, who is married and has two daughters, attributed his insurance situation to “the suffering that Obamacare has caused.”
He told students at Saint Anselm College during a bus tour in New Hampshire that his family was “in the process of finding another policy. I hope by the end of the month we’ll have a policy for our family.”
“By the way, when you let your health insurance lapse your wife gets really ticked at you. It’s not good — I’ve had some intense conversations with Heidi,” Cruz said, highlighting the “need to repeal [Obamacare] and start over.”
Cruz is a victim of a favorite Republican mantra: Make Congress follow the same laws it enacts for others. Prior to passage of the Affordable Care Act, the lawmakers and staff members were eligible for the same benefits employees of the federal government received. However, now lawmakers and some staff are required enroll in health plans available to other Americans under the law.
As a result, Cruz found himself in a dilemma shared by many constituents: In July last year, Blue Cross Blue Shield of Texas said it would end its PPO plans on the individual market at the end of the year and transition to HMO plans.
“Since the Affordable Care Act began, the market has changed,” the organization said in an alert to customers at the time.
Blue Cross Blue Shield added: “We’re sharing this information well in advance of the required notification date so that you have plenty of time to research the plan options that best suit your needs.”
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