President Obama announces that insurers can extend coverage
Millions of Americans have recently been notified that their current health insurance is being cancelled, and that they must select new coverage. According to President Obama, one “problem that has received a lot of attention concerns Americans who have received letters from their insurers that they may be losing the plans they bought in the old individual market, often because they no longer meet the law’s requirements to cover basic benefits like prescription drugs or doctors’ visits.”
Today, November 14, 2013, President Obama announced that “insurers can extend current plans that would otherwise be canceled into 2014, and Americans whose plans have been canceled can choose to re-enroll in the same kind of plan” (The White House Blog).
In a White House press release, the President stated that the health insurance marketplace has had a rough start, “I think everybody understands that I’m not happy about the fact that the rollout has been wrought with a whole range of problems that I’ve been deeply concerned about. But today I want to talk about what we know after these first few weeks and what we’re doing to implement and improve the law.” Read the President’s entire statement HERE.
While the Affordable Care Act already allowed individuals with grandfathered plans (plans that predate the ACA and have not changed since the law took effect) to keep their health insurance, today’s announcement allows those who have plans that have changed to keep their existing coverage as well. Now, it is up to the state insurance commissioners and insurers to decide whether to allow old policies to be renewed for the 2014 year.