|November 21, 2013|
Previously published on November 2013
Last week, following outrage over the cancellation of insurance plans that do not meet the minimum requirements set forth under the Affordable Care Act ("ACA"), President Obama announced a transitional policy that would allow individuals to keep their existing policies through 2014, even if the plan does not meet the Act’s standards relating to premiums, guaranteed availability of coverage, renewability, pre-existing conditions, discrimination based on health status, comprehensive coverage, and clinical trials.
To qualify for this exception, the plan must have been in effect on October 1, 2013, and the insurer must notify all individuals and small businesses that received a cancellation or termination notice (or would receive such notice) of the following:
- any changes in the options that are available to them;
- which of the specified market reforms would not be reflected in any coverage that continues;
- their potential right to enroll in a qualified health plan offered through a Health Insurance Marketplace and possibly qualify for financial assistance;
- how to access such coverage through an insurance exchange; and
- their right to enroll in health insurance coverage outside of an insurance exchange that complies with the ACA’s standards.
The policy is outlined in a November 14, 2013 from the Center for Consumer Information and Insurance Oversight (“CCIO”) to state insurance commissioners. The letter encourages state insurance agencies to adopt the policy; however, ultimately it is up to each state to determine whether to follow the Federal government’s lead.