Politics

Some Americans Might Not Be Able To Keep Their Health Insurance Plans Under New ACA Laws

| by Will Hagle

The debacle surrounding the implementation of the new health care exchange and other provisions mandated by the Affordable Care Act continues to grow more and more ridiculous. Reports of government oversight and lack of testing abound. Now, many Americans are reporting that they have been receiving letters claiming their current health coverage does not satisfy the new health care legislation, according to Reason.

Health Policy consultant Bob Laszewski published a blog attempting to explain the complexities of the new legislation and how it affects those that already have coverage.  

“The rules are very complex. For example, if you had an individual plan in March of 2010 when the law was passed and you only increased the deductible from $1,000 to $1,500 in the years since, your plan has lost its grandfather status and it will no longer be available to you when it would have renewed in 2014,” Laszewski wrote. 

The grandfather status for health coverage only applies to insurance plans purchased before the ACA was passed in 2010. The new plans offered on the health exchanges, however, can be significantly higher than the rates currently being paid by individuals. This is due to the Affordable Care Act’s system for offering more reasonable pricing for those individuals below the poverty line or with pre-existing conditions. Many claimed that this would, in turn, raise prices for the middle class, a phenomenon that appears to be occurring (at least for those that purchased health insurance after 2010). 

These reports of ending health care programs contrast with President Obama’s initial claim that citizens with existing health plans would not need to change their coverage. “If you like your health care plan, you can keep your health care plan,” Obama remarked. Apparently that was only partially true, as insurance companies are forced to comply with the new provisions set forth by the Affordable Care Act.