Cancelling the Cancellation! Myths Exposed! A Tale of Two Health Insurance Companies
If all you ever knew about recent health insurance events was learned from the mass media you would have every right to be confused. Here at my firm we take pride in taking insurance related stuff and converting it into something understandable for almost everyone.
Myth Buster #1-Just who is getting 'cancelled?' In the world of individual health insurance the only people who have to make some kind of move this fall are those who either bought a policy or modified a policy after March 23rd, 2010. Any policy in place before that date is considered 'grandfathered.' So technically for those people with a 'grandfathered' contract 'if they like their policy, they can keep it.'
Myth Buster #2 Oh My God! Change my health insurance? So the group affected is the group who either bought or altered their policies in some way during the last 3 1/2 years. Why would anyone do such a thing? Seriously? In a world with rising health costs people and companies change their policies all the time. Have you ever seen a premium hike? Have your ever seen a deductible or a copay go up? The fact is adjustments to meet current economic realities are common.
Myth Buster #3 Just because the President said this group can keep their 3 1/2 year old contracts does not automatically mean that is the case. Did you notice how the President met with the leaders of the nation's health insurance companies on Friday? There are 50 state insurance commissioners who are members of a group called the National Association of Insurance Commissioners. The carriers make filings on their products on a state by state basis. The President is hoping the insurance companies will 1. agree to spend even more administrative money -think money not being spent on claims- to alter their systems for his proposed change and 2. lobby the insurance commissioners to allow the change.
All of this makes the comparison of business strategies between Blue Cross and Blue Shield of Illinois and Humana rather fascinating. The Blues have been sending out the now infamous cancellation letters that fanned the fire and fed the frenzy. Humana's approach is to notify all of the affected individual policy holders that their renewal date will be changed to the end of December on an automatic basis, which will give those folks one more year of their current coverage. If a Humana client wants to change into an ACA compliant plan sooner, they have that option.
As you can see things things are moving fast and the mantra in this world is 'this is what we know as of today.' If you need help getting through the maze we are here to help. Just call 815-223-1222 for an appointment.
Certified Patient Protection and Affordable Care Professional-National Association of Health Underwriters
- J. Burt & Associates241 Marquette StreetPhone: 815-223-1222
La Salle, IL 61301-2436