Friday, November 15, 2013 – 09:00 a.m.

The Affordable Care Act, President Barack Obama’s signature legislation, is in a complete meltdown Friday morning, following acknowledgement by the President that the implementation is in shambles.

On Thursday, President Obama blinked, allowing insurers to reinstate and continue offering health insurance policies not in compliance with broad requirements of the new law.

In other words, insurers can, if they choose to, reset the table. A situation that is highly-unlikely to materialize, due to the fact that it would be a massive undertaking. Policies have already been cancelled; new policy offerings have already been put in place; rates have been set with the expectation that people in the individual insurance market, will transition onto the new healthcare exchanges.

Covered California, the state’s health insurance exchange entered into contracts with major insurers Health Net, Blue Shield of California and Kaiser Permanente, with the requirement that individual policies, not in compliance with the new law, would be cancelled. In-turn, those cancelled would buy insurance on the exchange.

With the bulk of extremely-low October enrollements in publicly-funded medicaid, the President now says, wait just a minute.

The granted reprieve, if it were to actually materialize, essentially creates two insurance risk pools. The non-exchange healthy pool, and the exchange high-risk pool. How this is all supposed to work, for 2014 only, will be interesting.

Remember, the President is blinking only for the 2014 calendar year. Policies, if reinstated, will be cancelled at the end of next year.

A dysfunctional Healthcare.gov website, consumer confusion, higher premiums for good plans, higher co-insurance and higher deductibles for cheaper plans has sent the whole plan into a free fall.

Yesterday’s move was designed to give Democrats at least some political cover by attempting to set up the insurance companies to be the fall guys.

It isn’t working!

The American people, and their pocketbooks, are paying attention.