In a Securities and Exchange Commission filing, health insurer Humana has indicated it expects the extension of health plans that don't meet the reform law's requirements to result in a more adverse risk mix than expected for people getting coverage through the exchanges.
Humana's assessment is in line with reports from HHS and Moody's Investors Service, which have both predicted the extension of health plans that aren't compliant with the law could lead younger, healthier people to stay away from the exchanges this year, resulting in a negative effect on the risk profile of the exchange health risk-pool. Others in the insurance industry have also expressed concern about plan extensions for the same reason.
Late last year, President Barack Obama took executive action to allow health plan providers to continue offering individual coverage this year that doesn't meet Patient Protection and Affordable Care Act requirements. Originally, non-grandfathered policies — plans that went into effect or underwent certain changes after the PPACA became law in March 2010 — had to meet new coverage requirements in 2014, and many insurers sent out cancellation notices to people in non-compliant plans.
More Articles on Health Plan Extensions:
Horizon Blue Cross Blue Shield of New Jersey Won't Renew Any 2013 Policies
Moody's: PPACA Policy Changes Mean More Risk for Health Insurers
HHS: Extending Health Plans Could Lead to Losses for Insurers