President Obama promised that, “If you like your health insurance, you can keep it.” But one insurance provider, Florida Blue, is ending about 300,000 policies by sending out cancellation notices to customers. This is about 80 percent of its individual policies in the state, NBC News reports.
About 14 million people buy their own coverage because they can’t get it at work. Many have sent notices, according to calls to insurers in several states.
Kaiser Permanente in California has sent out cancellation notices to 160,000 people – about half of its individual business in the state. Insurer Highmark in Pittsburgh is dropping about 20 percent of its individual market customers, while Independence Blue Cross, the major insurer in Philadelphia, is dropping about 45 percent.
Following the launch of ObamaCare on Oct. 1, many people are terminating their health insurance plans because ObamaCare mandates the kind of coverage you are now required to purchase. Coverage includes mental health and substance abuse, maternity care, dental and vision care – millions do not need or want this coverage. If your current plan falls short of the requirements of ObamaCare, it is being canceled and your new plan will mandate you pay for this coverage, according to NBC News.
The number of people in America who are not insured could increase under ObamaCare by the end of 2014. Frustrated consumers being kicked off their health insurance plans may want to opt out instead of signing up through ObamaCare.
About a third of companies opted out of taking part in insurance exchanges in states where they were already doing business, according to a recent report by McKinsey & Co. About half of states, which include about a third of non-elderly insurance buyers, will see a "material decline" in competitors, says McKinsey, while the other half of states will have the same or an increase in insurance choices on the exchanges.
"When there are too few carriers, down the road there will be issues with rate increases that make plans unaffordable for average Americans even with rate subsidies," says Bryce Williams, managing director of Towers Watson Exchange Solutions. "We need competitive insurance markets in all states (and) multiple carriers competing hard."
Williams says most counties have five to seven insurance companies competing on Medicare plans, USA Today reports. Competition on their exchange has pinned costs and annual rate increases are kept to less than 2.8 percent each year, kept annual rate increases to less than 2.8 percent a year, he says.