The news has been buzzing with clips of President Obama’s past statements indicating that Americans can keep their health coverage even with the implementation of health care reform. It has now become clear that in the individual health insurance marketplace, many Americans will lose the policies they have held in prior years. This is largely because individual plans must make changes to comply with health care reform, and these changes result in changes to the insurance policies offered to consumers.
California is taking aim at insurers who are changing individual policies effective 1/1/2014. The California Department of Insurance threatened legal action against one of California’s largest insurers, Blue Shield of California, arguing that the insurer should have provided 180 days prior notice, rather than 90 days notice, before changing its plans. In response to the challenge, Blue Shield has agreed to allow individuals to keep their policies for an additional three months, through March 31, 2014.
The extension applies to individual policies issued under Blue Shield Life & Health Insurance Company, a subsidiary of Blue Shield of California. Other policies that are not regulated by the California Department of Insurance are not extended.
Individuals in California who keep their policies for the additional three months may recognize cost savings, but the coverage may impact their ability to get subsidized coverage through the Exchange.
