Say Goodbye To Existing Non-Grandfathered Policies?

[AllenChicago]

I think the California Insurance Department may have unintentionally spilled the beans. Many of us have heard, from reliable sources, that as we near the end of 2013, Health Insurers will begin summarily cancelling individual policies that became effective after March 23, 2010.

"Non-grandfathered plans will cease to exist. You will have to select a conforming qualified health plan in 2014 if you are not covered by a grandfathered plan."

Source: Grandfathered Coverage and Rates - Covered California Q&A

I haven't seen anything in the official HHS rules or ACA regulations specifically stating that non-grandfathered plans are not allowed to continue. Perhaps it's health insurers who are signaling to the States that they will force their existing non-grandfathered clients into a 2014 Qualified Health Plan at the end of this year, or to go without Major Medical and pay the IRS penalty/tax.
-Allen

 

[taterpeeler]

based on what im hearing ALL NGF plans will term and will move to the precious metals some with client action needed and maybe some without but no confirm yet on the without client action...

bottom line what I have seen over the last few days of phone calls your block dies jan 1

 

[foxmarble]

based on what im hearing ALL NGF plans will term and will move to the precious metals some with client action needed and maybe some without but no confirm yet on the without client action...

bottom line what I have seen over the last few days of phone calls your block dies jan 1

What im hearing is that this is true put but only upon the plans renewal date. Example: plan eff date 3/1/13 will have to move to new hcr compliant plan 3/1/14. Hope what I'm grating is correct sol that it staggers out clients for me to.move onto new plans.

 

[timsip]

I think the California Insurance Department may have unintentionally spilled the beans. Many of us have heard, from reliable sources, that as we near the end of 2013, Health Insurers will begin summarily cancelling individual policies that became effective after March 23, 2010.

"Non-grandfathered plans will cease to exist. You will have to select a conforming qualified health plan in 2014 if you are not covered by a grandfathered plan."

Source: Grandfathered Coverage and Rates - Covered California Q&A

I haven't seen anything in the official HHS rules or ACA regulations specifically stating that non-grandfathered plans are not allowed to continue. Perhaps it's health insurers who are signaling to the States that they will force their existing non-grandfathered clients into a 2014 Qualified Health Plan at the end of this year, or to go without Major Medical and pay the IRS penalty/tax.
-Allen

From my UHOne rep, UH is lobbying against this as we speak. I don't know if any other carriers are in Washington right now trying to put this to bed, but I know UH is.

 

[AllenChicago]

From my UHOne rep, UH is lobbying against this as we speak. I don't know if any other carriers are in Washington right now trying to put this to bed, but I know UH is.

Timsip, are you saying that the insurance companies are being forced (by some rule or regulation) to terminate post-3/23/2010 individual policies on 12/31/2013?

Indeed this OREGON document www.cbs.state.or.us/ins/bulletins/bulletin2013-01.pdf says all insurers must cancel non-grandfathered individual plans. So perhaps it is the FEDS requiring these terminations and not simply the insurance companies doing it to save/make money?
-ac

 

[somarco]

If true (all non-grandfathered plans cancel 12/31) this goes beyond stupid.

It also runs counter to what I have been told, that you can keep your plan until your 2014 anniversary.

But HHS is calling the shots and this wouldn't be the first time they indicated they have no clue what they are doing.

Hard to believe HHS Shebullshits was ever an insurance commissioner. She must have slept through her term.

 

[taterpeeler]

If true (all non-grandfathered plans cancel 12/31) this goes beyond stupid.

It also runs counter to what I have been told, that you can keep your plan until your 2014 anniversary.

But HHS is calling the shots and this wouldn't be the first time they indicated they have no clue what they are doing.

Hard to believe HHS Shebullshits was ever an insurance commissioner. She must have slept through her term.

look... I have already been told this by the colored company and had it confirmed twice

 

[somarco]

told this by the colored company

We don't use that term any more. It is not politically correct.

 

[taterpeeler]

We don't use that term any more. It is not politically correct.

im old school baby....

 

[Ann H]

I think Tater was correct when he said (in an other thread) that association plans are looking at this differently than carriers who have contracts directly with the insureds.

An association has a master contract with a renewal date, and they also may have a renewal date for the member. Most carriers who have contracts directly with the member do not have renewal dates, and most rate guarantees are over.

So, if the plan terms on the renewal date on or following 1/1/2014, it's a cliff for direct-contract plans. That's probably most of the IFP plans that we write!

I just find it odd that a carrier would issue a letter saying:

"Your contract is termed. Head off to the exchange to shop."​

Unless HHS is dictating what can and cannot be said (again), it stands to reason that a carrier would say:

"The law requires us to cancel your contract, because it does not meet the benefit levels required by the new law. However.... here is a new plan that is closest to your current plan, and here are a dozen options. You might also look at the exchange to see if you qualify for subsidies."​

Why would a carrier boot them out the door unless they had to?

I would also expect most carriers to include the line "contact your broker, John Doe at 555-8888". If they aren't planning to include that line, brokers should bombard the insurance companies now to have it included. If HHS is dictating that carriers must send a term letter that directs the consumer to the exchange, because the carrier cannot represent ALL plans, then the carrier would certainly want the broker mentioned in the letter.