Will Your Individual Health Insurance Policy Be Cancelled?

Posted on: May 30th, 2013 by SamTabes No Comments

With health care reform under way, some individuals may be surprised to learn that their individual health insurance plan has been cancelled because it does not meet the specific criteria set forth in the Affordable Care Act.  This goes against President Obama’s promise that if you like your current plan you can keep it and may raise some concern among affected consumers.

Most large employer-sponsored health insurance plans will likely be unaffected since they have been tweaking existing plans over the past few years to meet criteria.  Unfortunately, some smaller health insurance carriers are finding it easier to cancel the old plans altogether and set customers up under a new plan that follows the rules of health care reform.  According to the Associated Press’s article on FoxNews.com, many policies that do not meet the appropriate standards will be discontinued.

This does not mean these people will not have insurance but it may be the time for them to start shopping around for a more comprehensive health insurance policy.  The National Association of Insurance Commissioners says many carriers will cancel policies and issue new ones immediately, which assumes affected customers will not go any amount of time uninsured.  This will likely be a major concern of many consumers though.

A recent memo from Iowa Insurance Commissioner Nick Gerhart to insurance companies says confusion is likely as information from insurers is still coming in to state regulators.  A good number of people could be affected by these cancellations and confusion needs to be dealt with timely.  In Washington alone, it’s estimated that 400,000 will be affected by these changes based on information from Stephanie Marquis, spokeswoman for insurance commissioner Mike Kreidler.  Hopefully these insurers can get it together and make sure consumers understand what is actually happening to their coverage before they panic.

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