Your Coverage is "Cancelled" - Sample Notice from a Major Insurer and What it Means

November 11, 2013

Over the past few weeks, President Obama was accused of "misleading" Americans about their ability to keep the health insurance they had before the Affordable Care Act. The President later apologized for his statement "If You Like Your Plan, You Can Keep It," acknowledging that plans that do not meet certain standards may be cancelled by insurers.

The below "cancellation" notice was sent to an individual private health insurance policyholder last week. But what does this letter mean?

Because the individual health insurance policy we sold you does not provide coverage for some basic benefits and we made certain financial assumptions in determining your monthly premium that we can no longer consider under the ACA, you have to decide to if you want to renew this plan now or choose a different plan in the near future.

If you want to keep this plan as is, you have to renew it one month earlier than you would otherwise because the ACA allows us to offer you this "less robust" plan if you renew as of December 1, 2013. If you do not choose to renew this plan or fail to do it for a December 1, 2013, effective date, you have to choose a new plan that does provide the essential health benefits required by the ACA, does not have exclusions for preexisting conditions, and does not charge more for being female.
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