Obama Announces Insurance Companies Not Required to Upgrade Existing Individual Plans
Under tremendous political pressure from both sides of the aisle regarding the cancellation of policies from health insurers, the Obama administration announced on Thursday a significant Health Care Reform legislation adjustment. The White House announced that insurance companies will not be required to upgrade existing individual plans to meet Reform legislation being implemented in 2014.
The White House further indicated that this change can be done administratively with legislative approval. “This fix won't solve every problem for every person, but it's going to help a lot of people,” President Barack Obama said in a White House briefing Thursday. This announcement came just a day after the report that only roughly 106,000 people signed up for insurance through the insurance marketplace.
There are two notifications insurers must send should they choose to adopt the announced change:
- Inform consumers about the protections required under Reform that these renewed plans do not include.
- Advise consumers that they will have additional options available to them through the exchanges.
This change has not adjusted the desire from the Obama administration for consumers to continue to consider obtaining insurance through the individual insurance marketplaces.