Here’s Why So Many Americans Are Getting Letters Saying Their Health Insurance Is Canceled

Business Insider | October 21, 2013

By Josh Barro

“If you like your health care plan, you can keep your health care plan.” This was one of President Obama’s key talking points when selling the Affordable Care Act, and it was never true — as many of the 14 million Americans currently covered by individually-purchased health plans are now learning.

As Kaiser Health News reports, individual market insurers are sending out rafts of cancellation notices, telling subscribers they have to change to new plans starting in 2014. Here’s why:

1. Some old plans don’t meet new requirements under the ACA. Starting in 2014, most health plans will have to cover 10 “essential health benefits,” from hospitalization to maternity care to dental care for children. Most will also have to limit out-of-pocket expenses to no more than $6,350 for an individual plan or $12,700 for a family plan. And they’ll have to meet a minimum “actuarial value,” generally meaning that across a standardized population, the insurer will have to expect to pay at least 60% of health care costs incurred by plan participants.

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4 Comments on "Here’s Why So Many Americans Are Getting Letters Saying Their Health Insurance Is Canceled"

  1. Lots of “incentives” available to get people to “change” over to the new healthcare system. Making it unlawful NOT to be enrolled in a new healthcare plan is one “incentive”. Another is using the IRS to impose fines on individuals and put levee’s on their bank accounts or property if they don’t sign up. Ads for new Healthcare Insurance companies “online” claim that plans start as low as 45$, yet the average monthly individual health insurance premium paid for single-person coverage in NV, for example, is $273!

  2. It was never about healing, like we pretend to believe.
    Their profits will skyrocket soon enough, you will see.

    Unless they misjudge the markets & tank the economy again.
    But the taxpayers would just be forced to bail em out, while the gov gives their puppetmasters even more power, perhaps even more laws to mandate we buy even more of their products.

    • The proof of the truth you speak is available right in their own information!

      “There are many reasons to do biometric testing such as health promotion, health awareness, and health education, however, the primary factor motivating organizations to have this service performed is economics. Health screenings have been shown to reduce overall medical expenditure by identifying risk factors and employees that need added health coaching services.

    • Yet more proof of the truth you tell of!

      A list of “clients” includes Microsoft, Bayer, Cheerios, Lilly, Wyeth, Rite Aide, Novartis, Walgreens, and many others.

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