Obama To Let People Keep Canceled Health Plans For Another Year

By: CBS (posted by Greg Palmer)
By: CBS (posted by Greg Palmer)

(CBS) President Obama announced Thursday that his administration will let health insurers extend existing health plans on the individual and small-group markets into 2014. The administrative policy change will let insurers reach out to the millions of Americans being dropped from their plans so that they can renew their insurance for another year while the market adjusts to new Obamacare regulations.

Insurers that extend existing plans must also notify consumers what protections these renewed plans do not include. They must also notify customers that there are more options available on the new Obamacare marketplaces that offer better coverage and that tax credits are available for many consumers.

Now that the new Obamacare insurance marketplaces are opening, more than 4,800,000 people across the country are being dropped from their insurance plans, according to the latest CBS News tally. Plans are being canceled if they fail to meet the health care law's 10 minimum standards, including maternity care, emergency visits, mental health treatment and even pediatric dental care.

The dropped plans seemingly violate Mr. Obama's 2009 campaign pledge that, "If you have insurance that you like, then you will be able to keep that insurance."

The president's stance on the matter has shifted significantly in the past few weeks -- while he has now apologized for the issue and has acknowledged it is a problem, he initially suggested that he wasn't breaking his promise. Late last month, Mr. Obama pointed out that plans existing before the Affordable Care Act was enacted were "grandfathered in" to the system -- consumers only lost coverage if insurers altered those policies after the law took effect. In that case, Mr. Obama said, insurers had to "replace them with quality, comprehensive coverage."

However, the problem has been compounded by the fact that many people have been unable or discouraged from shopping the new Obamacare marketplaces because of the significant technical problems with HealthCare.gov and some state-run Obamacare websites.

The Health and Human Services Department reported Wednesday that just over 106,000 people have enrolled in plans so far -- well below the approximately 500,000 enrollees the administration was expecting to see in the first month of open enrollment.


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