Some 25,000 in Nevada receive health insurance cancellation notices
Many consumers in Nevada are currently in a state of limbo concerning their health insurance coverage. Approximately 25,000 people throughout the state have received cancellation notices from their insurance providers, but whether or not these cancellations will actually occur is still up for debate. Policyholders are currently waiting on state officials to determine if these cancellations will bear any weight and whether health insurance plans that do not comply with federal standards should be allowed to remain active.
Regulatory shift could create some turbulence
Last week, President Obama announced a major change to the Affordable Care Act. According to federal law, health insurance plans must meet a certain standard. Policies that fail to comply with federal standards must be cancelled. Thousands of people throughout the U.S. have received cancellation notices from their insurers because of this regulation, which has lead to a massive outcry from consumers. President Obama has announced that policies that do not meet federal standards can remain active for one year, but the ultimate decision on whether or not this reprieve can be extended to policyholders lies with state governments.
State officials weigh the potential benefits of extending health insurance policies
The Nevada Division of Insurance is currently debating on how to approach the issue. State officials are keen to continue their compliance with the Affordable Care Act, but the regulatory shift has created a significant amount of confusion. In other states, such as Massachusetts and New York, officials have determined that health insurance policies that do not comply with federal standards must be canceled, partly due to the concerns that insurance companies have regarding the matter.
Reversing cancellations could be a problematic issue
Reversing cancellations is considered by many insurers as a “logistical nightmare.” The logistics involved with such a measure are complex. Insurers must negotiate with doctors, pharmacies, hospitals, and other medical facilities in order to make coverage feasible. These negotiations typically happen a year or more before new insurance products are offered, but insurers would only have a matter of weeks to renegotiate contracts with health care providers if they are required to reverse cancellations.