My Health Insurance Was Cancelled. Why?

Situation:

A wave of canceled policies – primarily for people in the individual insurance market exchanges and whose plans are now considered sub-optimal under the new health care law’s coverage standards – have prompted public outrage over the Affordable Care Act (ObamaCare) and toward the president who many believe broke promises to Americans that they would be able to keep their plans if they liked them. The main problem with the president’s promise is that he does not own the insurance companies nor does he regulate the state insurance commissioners. ASBC will not take any type of political side in this discussion but will point out the facts surrounding this issue.

Analysis:

  1. ACA mandates certain entitlements for coverage within all insurance plans regardless of the needs of the individual. These entitlements add to the cost of the plan.
  2. Insurance companies are more than willing to cancel individual or group plans that are not compliant with the federal law as they can now issue other policies at a higher rate and with no underwriting expense.
  3. Individuals have no choice on keeping their plans or not. This all has to do with the requirements of the ACA which is the law of the land.
  4. Ohio residents could always get health insurance regardless of health condition under the High Risk Pool. This option has now been eliminated and replaced with the market place plans.

Solution:

The president came out today with a mandate stating that American’s can keep their current plan if they desire to do so. This will require changes or deletions of the current ACA law which need to be accomplished ASAP. Again, the president does not own the insurance companies and cannot compel these companies to reinstate the old plans.  When ACA was passed one of the early implementations was no child can be denied coverage for any type of pre existing conditions. The result was that insurance companies stopped issuing child only policies. The practical result was many children now going with our coverage. A child only policy premium was approximately $50.00 per month.  To add a child to an existing health plan was approximately an additional $150.00 for a parent and child. This expense was much more than the single mothers I was dealing with could afford so their children were not covered.

Practically speaking individuals who had their policies cancelled need to go to the new exchanges and take out ACA compliant plans. This will ensure you have current insurance that does meet the requirements of the current law and that you will be able to keep this insurance in the future. While the premium expense is more (sometimes a lot more) that your previous plan it is still effective insurance to cover yourself and your family should the need arise to use it.

ASBC is here to help you through this arduous process and answer any questions you may have about the ACA and its guidelines. Contact us today and a professional business advisor will be on hand to guide and steer you in the right direction!

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