POSTED: Tuesday, October 29, 2013 - 6:19pm
UPDATED: Wednesday, October 30, 2013 - 11:32pm
Amidst all the complaints about the Affordable Healthcare Act website…
A new issue has cropped up that bears some explanation.
Stories are appearing of people who are in the individual insurance market, whose policies are being cancelled and who are offered more expensive ones.
First, some facts.
About 14-million people buy their health insurance on an individual basis, not as part of a group or company.
And every year, that number changes plans at a rate of 50%. It’s called churning.
When the healthcare Act kicked in in March of 2010, the President promised…
“If you like your health insurance, you can keep your health insurance.”
So why are some folks facing cancellation?
Did he lie?
Any policy in force before 2010 will be grandfathered in, unless significant changes that affect consumers are made.
If that happens, the policy must meet the new, more comprehensive standards of coverage.
That would end the so-called “teaser-rates” and policies that can drop you or impose a cap on dollar coverage.
The administration knew that more than half these bare bones policies would end or be changed, and that those customers would have to shop for another, because that happens in the private market anyway.
But should that have been explained upfront?
Marilyn Tavenner, head of Medicare and Medicaid testified today that any cancellation of these grandfathered policies is at the discretion of the insurance company, not mandated by law, no matter what they are telling customers.
The new policy may cost more, unless you qualify for a subsidy.
But it is more comprehensive and cannot drop you as a policy-holder.
That is the good news, bad news side of the new law.
But many are saying, it is a big detail that should have been made clearer.
Now, if they could just get the website to work.