In the wake of Obamacare’s launch on October 1st, the president has been subject to criticism over canceled insurance policies. After promising that if you like your health insurance plan, you can keep it, President Obama was proven wrong as insurance companies canceled millions of policies across the country.
While the White House scrambled to remedy the situation, insurance providers defended their decisions. After all, the canceled policies no longer met regulations as set forth by the ACA, and this was a decision forced on them by the law. This prompted President Obama to suggest a solution: Insurance companies could have another year to comply with regulations, meaning they wouldn’t have to cancel these policies until the end of 2014.
The proposal, however, came with one caveat: It merely removed the requirement that all insurance plans conform to regulations in 2014, and extended the deadline for compliance by one year. It did not guarantee that state insurance commissioners would agree to the plan, or that insurance companies had to go along with it. Those decisions would still be made on a state-by-state basis.
Nearly 600,000 individuals are affected by canceled policies throughout California, and have waited anxiously to find out if their policies will be reinstated. On November 22, the Covered California board voted unanimously to reject the president’s proposal. This means the cancellations will remain, and health insurance policies must conform to standards set forth by the ACA. So far, only 12 states have decided to go ahead with President Obama’s proposal.
While this decision is sure to be controversial, officials feel that delaying the problems with Obamacare will not fix them, and could possibly even make them worse. Those whose policies have been canceled are being urged to log into Covered California’s website, or get assistance from a licensed insurance broker to secure a plan on either the State Exchange or the private marketplace.
Steve Amante is the President and CEO of Amante & Associates Insurance Solutions, Inc. To learn more about Healthcare Reform contact Steve Amante or Frank Faldmo the firm’s Employee Benefits Advisor at (951) 676-8800 or visit: www.amanteandassociates.com
