WASHINGTON -- The Obama administration announced Wednesday that some
Americans with health insurance policies that donft meet consumer standards set
by the Affordable Care Act will be allowed to keep their plans into 2017, three
years later than originally envisioned.
Allowing some consumers to keep old insurance plans past the end of the
President Obamafs term in office marks the latest effort by the administration
to get out from under one of the most damaging controversies shadowing the
launch of the healthcare law.
Senior administration officials, briefing reporters on condition of
anonymity, said they believe that about 1.5 million consumers nationwide
currently are covered under such plans, about 500,000 of which were purchased by
individuals and the rest by small businesses.
gThe goal is to implement the Affordable Care Act in a common-sense way,h a
senior administration official said, adding that officials believe that this
latest announcement will be the last significant change the administration will
make in the lawfs deadlines and requirements.
Officials also announced that the open enrollment period for healthcare
coverage next year would begin on Nov. 15 -- notably after the fallfs midterm
elections -- and extend through February 2015.
Many Americans who had bought healthcare plans on their own were stunned last
fall when insurance companies announced that their policies would be canceled
because they did not include required benefits or meet other standards set by
the law.
Because Obama had promised that people who liked their existing plans would
be able to keep them, the cancellation letters quickly became a major political
issue.
White House officials repeatedly have said that the vast majority of people
who got cancellation notices were able to replace their old policies with new
ones, in some cases at lower cost. However, those arguments have not quelled the
political uproar. Conservative and Republican groups already have run millions
of dollars' worth of advertising against Democratic candidates on the issue,
accusing them of participating in the glie of the year.h
The healthcare law was designed to phase out health insurance plans in 2014
if they did not include a basic set of benefits or include limits on how much
consumers can be required to pay out of pocket for their medical care.
After the controversy broke, the administration announced that state
regulators could allow insurers to renew old policies in 2014. Not all states
have gone along with that plan. Some, particularly those with liberal,
Democratic insurance regulators, have balked at allowing what they consider
sub-standard plans to remain on the market.
The new guidance would allow those plans to be renewed again as late as Oct.
1, 2016, meaning that some consumers could hold on to their healthcare plans
into 2017.
The practical effect of the new extension may be limited. Officials said they
believe that the number of consumers covered by plans that donft meet the lawfs
standards will be significantly lower by 2016 because of the usual churn in the
market for individual insurance.
gThe expectation is that this will be a very small number of people,h a
senior official said.
However, the new extension may defuse a political time bomb that the
administration would have faced later this year if some consumers had once again
received notices canceling their insurance plans just ahead of the November
elections.