Later On

A blog written for those whose interests more or less match mine.

More information on health insurance cancellations

leave a comment »

Sarah Kliff explains in the Washington Post‘s Wonkblog:

So these insurance cancellation notices. I hear a lot about them. What’s the deal?

Let’s start with the very basics here. About 15 million people purchase health insurance policies on the individual market. That’s about 5 percent of the population. When they do so, they typically purchase a 12-month contract with an insurance company. And when that contract runs out, both the individual and the insurance plan have an escape hatch. The individual can decide to no longer purchase the plan — and the insurance company can decide to no longer offer the plan.

Most individuals don’t stay in the individual market very long: One study, published in the journal Health Affairsfound that 17 percent of individual market subscribers purchased the same plan for two straight years or longer.

There are some restrictions on how insurance companies can terminate products. HIPAA, a health law passed in the 1990s, does require that insurance companies offer subscribers the opportunity to renew their policy, so long as they continue to pay monthly premiums. If they want to discontinue a subscriber’s policy, the insurance plan must provide 90 days notice and “the option to purchase any other individual health insurance coverage currently being offered by the issuer for individuals in that market.”

And these are the notices that insurance plans are sending out right now, to hundreds of thousands of subscribers: notices saying that they do not plan to offer the policy anymore, and information about what policies will be available.

So why is this happening right now? 

Some — or maybe even most — of the plans offered on the individual insurance market right now don’t meet certain requirements in the health-care law. They may not offer preventive care without co-payment, for example, or leave out coverage of maternity care, one of the health-care law’s 10 essential benefits.

Some of these plans have stuck around for a little bit. The health law allowed . . .

Continue reading.

Written by LeisureGuy

29 October 2013 at 10:59 am

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.