Many insurers are sending out cancellation letters to people enrolled in health plans that don’t meet requirements for basic levels of coverage under the healthcare reform law. Under the reform law, individual health plans must cover “essential benefits” such as prescription drugs, mental health services and maternity care. Insurers must also cap consumers’ annual expenses.
Various insurers are dropping plans that cover sizeable chunks of their individual markets. Florida Blue is ending about 300,000 policies, 80 percent of its individual policies in the state. Kaiser Permanente in California has sent cancellation notices to approximately 160,000 people who make up half of its individual business in the state.
House Majority Leader Eric Cantor (R-Va.) said Tuesday the issue is “really, really troubling” for Americans, according to the report.
White House officials have argued the people whose plans are being cancelled represent only a small subset of consumers, and they can purchase better plans through the health insurance exchanges, according to the report. Although the new plans might cost more than previous coverage, the higher premiums will be offset by subsidies available to many people purchasing plans through the exchanges, according to the White House.
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CMS Finalizes Integrity Rules for PPACA Exchanges
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