The latest news surrounding health care reform deals with the uproar over millions of cancelled policies, which would leave consumers without health care coverage in 2014. Contrary to the President’s statement that “if you like your health care plan, you can keep your health care plan,” health plans were being discontinued because they no longer complied with the law. From heavy pressure by Democrats to fix the health care law, President Obama announced on November 14th that the administration will allow insurance companies to keep individual customers on their existing plans for an additional year, even if the plans don’t meet the law’s requirements. But are all states allowing their residents to renew their plans?
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The president’s “fix” does not require insurance companies to take back Americans who were kicked off of their current health plans, but it does give them the option of taking the customers back if they want. The government has informed each state’s insurance commissioner that they have permission to allow insurers to offer out-of-date private plans for an additional year.
While some government officials argue that allowing the renewal of old plans undermines the success of insurance marketplaces, and that some of those plans have fewer benefits than new ones outlined in the new law, more states are allowing consumers to renew their cancelled plans. Here is a chart by Stateline outlining where states currently stand on renewals:
UPDATE: As of November 26th, Governor Tom Corbett and the Pennsylvania Insurance Commissioner announced an extension to individual health coverage where Pennsylvania insurers can allow members with individual health insurance policies to keep their current plans for another year. Insurers, including Geisinger Health Plan, are working with the Pennsylvania Department of Insurance to provide consumers with coverage options.