Many Texans have been receiving letters informing them that their coverage won’t be available next year.
All across the state, Texas health insurance customers have been receiving the letters that they don’t want to receive, which have been telling them that their insurers won’t be continuing their policies and that they will need to start shopping for new coverage for next year.
The letters have informed them that even though they have made their payments on time, their health plans are canceled.
These Texas health insurance policies have been discontinued, regardless of whether or not the policyholders have properly kept up the payments of their premiums. According to Elizabeth Colvin, one of the so-called “navigators” at Foundation Communities, who assists people in Central Texas to be able to better understand the Affordable Care Act, “I don’t know what those numbers are because we don’t have the information what plans will be available next year.” It is unclear as to the specific motivation behind the decision made by the insurers to stop offering those health plans.
The Texas health insurance companies have not yet provided more information on future offerings.
Colvin added that “The timing of this is unfortunate that people are being told they can’t have something but they don’t know what they can have.”
So far, there are two primary reasons that the insurance companies may have chosen not to continue to offer the health plans. The first is that the policies were not proving to be profitable for the insurers. Colvin pointed out that at this point, insurers have had two years to be able to monitor enrollment and the individuals who have opted in to specific policies and they have used that time to be able to understand whether or not the plans have been profitable and whether or not they are worthwhile maintaining into the future.
The second reason is that the policies have been found not to meet the requirements that have been laid out by the Affordable Care Act. Some Texas health insurance policies were grandfathered until 2016, which means that there were still people enrolled in policies that didn’t quite meet all the requirements. That said, the rules change for those plans as of next year and the insurers would not have had any choice but to discontinue them.