Cancellations cause significant frustration among consumers
Health insurance policies in the U.S. are being subject to cancellations as insurance companies are being forced to execute substandard policies. These policies do not meet the standards established by the federal Affordable Care Act and, as such, do not offer consumers the quality of benefits that the law is meant to ensure. Some 4 million people throughout the U.S. are expected to lose their coverage as a result of insurance cancellations and this issue has become quite controversial. Some lawmakers believe that recent cancellations are only the tip of the iceberg when it comes to problems associated with the Affordable Care Act.
In response to public outcry regarding insurance cancellations, President Obama recently announced that insurers could choose to keep policies active for at least one year. The problem, however, is that the announcement was made after insurers had informed policyholders of the cancellations. Revoking cancellations could create a logistical nightmare for insurers and many have opted to have cancellations remain.
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Congressman predicts further trouble ahead
As cancelled policies are not likely to be reinstated, Congressman Kevin Brady of Texas suggests that many more people could see their policies cancelled in the coming months. Brady suggests that as many as 80 million people could find themselves without health insurance coverage by the end of 2014. The politician is claiming that more policies will be cancelled as new regulations of the Affordable Care Act become active. Many of these regulations are not scheduled to be enacted until some point in 2014. The regulations are expected to add further pressure on insurance companies concerning the cancellation of substandard policies. Brady’s concerns are being echoed by Avik Roy, and insurance specialist with the Manhattan Institute.
Small businesses are having their access to health insurance coverage through the Affordable Care Act restricted as well, adding further frustration to the issue. Businesses with 50 or fewer employees will not be able to receive coverage through the federal law until the end of 2014, a full year later than had been initially planned. This is meant to provide the federal government with more time to improve its insurance exchange network. By the time small businesses gain access to the federal exchange network, however, new regulations will have been enacted concerning insurance coverage that may further limit the options that these businesses have.