Healthcare Reform and Cancellations
Health plans are sending hundreds of thousands of cancellation letters to people who buy their own coverage, and many Americans are now concerned about their health care plans getting cancelled.
Some are frustrated because they want to keep what they have and others are being forced to buy more costly policies. This leaves many consumers with a couple of main questions:
1. Why are plans getting cancelled?
Many policies fall short of what the Affordable Care Act requires starting Jan. 1, so the insurance companies have to cancel the policy.
Most are ending policies sold after the law passed in March 2010. At least a few are cancelling plans sold to people with pre-existing medical conditions.
2. What will new plans look like?
The law requires policies sold in the individual market to cover 10 “essential” benefits, such as prescription drugs, mental health treatment and maternity care.
The new policies, in most cases, will offer consumers better coverage, in some cases, for comparable cost — especially after the inclusion of federal subsidies for those who qualify.
Insurers cannot reject people with medical problems or charge them higher prices. The policies must also cap consumers’ annual expenses at levels lower than many plans sold before the new rules.
3. What if my costs go up?
Some receiving cancellations say it looks like their costs will go up, despite the fact that half of all enrollees will qualify for income-based subsidies.
Prices will vary and depends on things like: where a person lives, their age and the type of policy they decide to buy.
4. How can I keep a similar plan with comparable cost?
Make sure you talk to an insurance professional and that you see if you qualify for a subsidy before applying for a new health care plan.
Most of all– Stay educated and on top of what is going on! If you are feeling confused, make sure to talk to someone about your choices before making a decision.
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