Insurers -vs- DOI Regarding Renewal Date Manipulation.

[AllenChicago]

AUGUST 1, 2013
Several health insurance companies doing business in Illinois are planning to adjust policy renewal dates, in an effort to extend customer's current plans out to December 2014. This action will prevent existing customers from having to comply with the ObamaCare regulations and pay dramatically higher premiums, until the end of 2014.

The Illinois Department of Insurance sent a letter to all carriers doing business in the state at the end of April 2013 forbidding this practice. This week, the head of the D.O.I. said that his department will deny any insurer's request to change a policy's renewal date.

Insurers are now asking Governor Quinn to override the Department of Insurance's order. Consumer advocacy groups are demanding that Governor Quinn enforce the order.

Full Story: Insurance regulator slams companies for ‘manipulation’ to charge more

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[stuy119]

Well that really escalated quickly.

 

[AllenChicago]

Well that really escalated quickly.

What confuses me is that the Insurance Commission says that companies must come to his department to request a renewal date change. I didn't think that something this mundane would need D.O.I. approval. Haven't some companies already begun the process of changing customer's renewal dates?

 

[stuy119]

It depends on whether you're talking individual or group.

Group is offering an early renewal option (option being the key word), which carriers feel allows them to skirt the true wording of the legislation.

IFP isn't allowed to change anything, unless you move to another carrier.