Benefits Buzz

Obama: Americans Can Keep Canceled Individual Policies

Posted on November 19th, 2013

Last week, President Obama announced that Americans can keep individual health insurance policies that they were told will be canceled because they failed to meet requirements established by the Affordable Care Act (ACA). This recent announcement would expand a provision in the ACA that grandfathers plans to now include any plan in which individuals are currently enrolled.

 

"Americans whose plans have been canceled can choose to re-enroll," the President said during a White House news conference.

 

President Obama has left it up to the states to independently decide how they want to implement this change. Each state has the ability to determine whether or not they will implement this change, and if they choose to implement it, they will have control over defining some of the specific parameters. Insurance companies will also need to make decisions on how to accommodate this new provision if the change is adapted in a state in which they operate.

 

Other Details on the Announcement

 

Insurance companies will not be allowed to issue coverage from these canceled plans to new consumers. Insurance companies that wish to participate in this change will have to follow two rules:

 

  1. They will have to notify consumers which requirements under the ACA are not included in these plans.
  2. They will have to tell consumers about the options available to them through the Public Exchanges.

 

We will provide additional details once the state of Illinois provides more guidance on how they will adapt to this new option.* In the meantime, join our mailing list or click here to stay updated on the latest healthcare reform news with Flexible Benefit Service Corporation (Flex).

 

*UPDATE: About a week after the president’s announcement there was a press release issued by Governor Pat Quinn’s office. It indicated that the state of Illinois would allow insurance companies to continue providing these health plans for another year. Now it’s up to the insurance companies to decide how to proceed.

 

Note: The materials contained within this communication are provided for informational purposes only and do not constitute legal or tax advice.  

 

Tag Cloud

Archives

Enter Your Email