Health insurance policies in Nevada remain cancelled
The Nevada Division of Insurance has announced that all health insurance policies that were cancelled due to the Affordable Care Act’s provisions cannot be renewed in the state. This decision came after consulting with the attorney general’s office and meeting with several executives from insurance companies operating in Nevada. The logistics involved with reversing cancellations, especially after notices had already been sent to policyholder, have been deemed too extreme to be viable.
25,000 consumers forced to find new policies
Some 25,000 Nevadans have had their insurance policies cancelled because their plans did not meet the standards outlined by the Affordable Care Act. The law requires insurance companies to cancel substandard policies, but the Obama Administration announced earlier this month that this specific provision would be delayed until 2015. As such, insurers have the choice to allow policy holders to renew their substandard coverage. In some states, this decision is left to insurance regulators, as is the case in Nevada.
Regulators fear rising costs if cancellations are revoked
The Division of Insurance notes that it has been working to comply with the Affordable Care Act for the past three years, encouraging consumers to participate in the insurance exchange that would take root in the state and raising awareness of the law’s various provisions. Forcing insurers to renew substandard policies could have a major financial impact that consumers may not be prepared to handle. Regulators suggest that revoking cancellations could cause health insurance rates to rise significantly, and not only for those that are renewing substandard policies.
Consumers may find coverage through state’s exchange
Those whose policies have been cancelled will have to purchase new health insurance policies, either through the state’s insurance exchange or through the private market. Nevada’s health insurance exchange has, thus far, managed to avoid some of the technical difficulties that have crippled consumer’s access to other exchanges located throughout the country.