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An insurance industry official told Fox News that while the administration was playing down the significance of the move, it could turn out to be a troublesome last minute change and the industry fears far more than the 500,000 people will apply.

Another industry official, America's Health Insurance Plans spokesman Robert Zirkelbach, said, “This type of last-minute change will cause tremendous instability in the marketplace and lead to further confusion and disruption for consumers."

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"Holding a fire sale of cheap insurance is not a responsible fix for a broken program. This is a slap in the face to the thousands of Americans who have already purchased expensive insurance through the ObamaCare exchanges," Sen. Marco Rubio, R-Fla., said in a statement.

House Energy and Commerce Committee Vice Chairman Marsha Blackburn, R-Tenn., described the move as "another major policy shift" from the Obama administration.

"We asked Secretary Sebelius point blank what would be the next holiday surprise, and she was silent. Yet, here we are with another major policy shift. The sad reality is that when the law takes effect come January 1, more Americans will be without coverage under Obamacare than one year ago," Blackburn said in a statement released Thursday evening.

"Less than two weeks from going live, the White House seems to be in full panic mode. Rather than more White House delays, waivers, and exemptions, the administration should provide all Americans relief from its failed law."

http://www.foxnews.com/politics/2013/12/...care-exemption/