Posts Tagged ‘non-compliant insurance policies’

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PRESS POSTURING

October 31, 2013

The headlines covering private insurance companies cancelling individual policies have been disconcerting.

Then I read “Why Some Plans are Being Cancelled” the other day and learned the facts:

  • 15 million people (5%) have 12 month health insurance contracts that are NOT automatically renewable.
  • They are plans designed for emergencies such as being between jobs or needing to wait a period of time for new coverage, or whatever.
  • Only 17% of that audience normally purchases the same plan again. I think that means less than 1% of people who purchase this type of insurance are being impacted.

In 2010, these plans were grandfathered even though they did not comply to new  Affordable Healthcare Act.  They would remain protected AS LONG AS THEY MADE NO CHANGES including the addition of new members to the existing plan coverage.

But, of course, that’s not how insurance works.  Changes were made; they lost their grandfathered status and now must comply.  A SIMPLE, UNDERSTANDABLE EXPLANATION which appears to be fair.  Had the insurance companies followed the rules, many of the folks you are seeing on nightly news crying “Woe is Me” would still have coverage.  The INSURER , not the GOVERNMENT, renigged – thinking they could either get away with it, or to take advantage of the time before ACA went into affect to continue to RIP OFF these folks..

Advance the calendar to four years later.  Without new buyers, the plans without changes were unsustainable.  It made no business sense to continue.  So the trusted insurers pulled the plug.  And the Republicans rose up in arms, scouring their states for impacted individuals, parading these poor folks before the Press cameras as PROOF that Obama lied – you could not stay on your existing plan; you just needed insurance…and it became more fodder to rage over to  accompany the legitimate but predictable  muck-ups in getting a system up and running.  

All this seems reasonable to me, so why the focus on it? 

This is impacting 7-12 million people in total-all of whom have had four years notice.  It is being shouted about on the street corners of every town across America.  But after you listen to the first one, you slowly realize every single interview or incident “captured on tape” has identical talking points.  That smells like yet another Republican Ruse to me!

Meanwhile, I have now witnessed person after person being interviewed….all spouting the same script…how they have been harmed by Obamacare.

Common sense tells you that if they do not have the initiative and where-with-all to stop throwing away money on a bad plan, they probably have not miraculously carefully crafted a message that never deviates across the country – no matter where the person lives.  That may be harsh but the fact these incidents have been tracked to TEMPORARTY ‘bridge” policies is a bit revealing.

But thanks to the STRIB and the Washington Post…now I know.  Sensational news trumps Informative helpful news…one more time.

If you just got cancelled for that or for the fact your insurer never upgraded the policy to include care that has been mandated essential, then turn your back on those caring Repos making fools of you and call 1 800 318 2596.