Health insurance policyholders gain a reprieve in California

California Health Insurance

Health insurance cancellations continue to spark controversy

The cancellation of health insurance policies throughout the U.S. has sparked serious controversy in recent weeks. Many insurers throughout the country have plans to cancel policies, preventing policyholders from renewing their policies on January 1, 2014. Insurers are cancelling policies that do not comply with the standards established by the Affordable Care Act. Those whose policies have been cancelled will be forced to purchase new health insurance coverage either from private companies or from state-based insurance exchanges.

Anthem Blue Cross decides to extend policies

In California, Anthem Blue Cross has taken note of the frustration that the forthcoming cancellations have caused among consumers. In order to placate this frustration, the insurer has announced that it will be offering a two-month extension for all the policies it had planned to cancel. The company had planned to cancel some 104,000 policies due to the fact that these policies did not comply with new federal regulations outlined by the Affordable Care Act. Now, however, these policies will remain active through February 2014.

California Health InsuranceSome insurers have been targeted by regulators

Other insurance companies in the state have been facing regulatory scrutiny as a result of the cancellation issue. California Insurance Commissioner Dave Jones has issued a threat of legal action against Blue Shield of California. The Commissioner claims that the health insurance company has failed to provide policyholders with the required 180-day notice concerning cancellations. Legal action would seek to secure a three-month extension for the policies that the insurer had planned to cancel this year.

Anthem Blue Cross faces legal action

While Anthem Blue Cross has opted to extend policies, it has still run afoul of some consumers. Last week, the insurance company was sued by policyholders that claimed they had been forced to give up their “grandfathered” status policies in 2011. These policyholders suggest that they were not informed of the consequences of doing so and were intentionally misled by the health insurance company.

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