Health Care In The States
Florida Regulator, Blues Plan Agree To Insurance Fix Proposed By Obama
By Phil Galewitz
November 15th, 2013, 5:03 PM - Kaiser Health News
Florida Insurance Commissioner Kevin McCarty said he will allow insurers to
adopt President Barack Obamafs plan to extend current policies
facing cancellation so that consumers can keep the coverage they have now. In
fact, he was permitting plans to do that months before the president suggested
it.
Most carriers will be unaffected because the state had already allowed
Aetna, Humana, Coventry and Cigna to offer members the option of
renewing their 2013 policies before the end of this year to avoid having to
add the new benefits and higher costs associated with the Affordable Care Act.
Florida Blue, the statefs largest insurer, was one big exception.
The proposal deals with policies purchased by individuals, not those provided
through an employer.
Hours after Obamafs announcement Thursday, however, the statefs Blue Cross
and Blue Shield affiliate said it planned to follow the presidentfs suggestion
to extend policies, starting with 40,000 policyholders who were being
canceled at the end of December. Eventually, all of its 300,000 policyholders
could be given the same option when their policies expire next year.
McCarty said Florida Blue would not raise rates
on policyholders whose coverage was slated to end in December because itfs too
late for the insurer to meet the statefs 45 days notice requirement to
consumers.
Florida Blue Senior Vice President Jon Urbanek said many of policies being
canceled in December offered limited benefits, for instance, covering
hospital care only or physician care only.
Florida Blue will allow members to continue their existing coverage or
explore new plan options under the health law. Affected members will
receive letters informing them that they can keep their current plans
through 2014. The company is examining the impact on small group
plans.
McCarty, an outspoken critic of the health law, said he did not know how many
policyholders in Florida have taken insurers up on offers to renew their
current policies before the end of the year. He said several other states,
including Arkansas and Mississippi, have offered insurers and policyholders the
same options.
The presidentfs plan to extend 2013 policies into next year should have been
done months ago, he said. gAt best, itfs a temporary fix because this just kicks
the can down the road,h in terms of letting policyholders hold onto their
current plans.
McCarty worries the strategy will impact insurers selling coverage in
the federal insurance marketplace because they might be left with older, sicker
enrollees. That could drive up costs and lead to higher premiums in 2015, he
said.
This entry was posted on Friday, November
15th, 2013 at 5:03 pm.