Ind. Rejects Obama’s Insurance Cancellation Solution
By Mike Perleberg
(Indianapolis, Ind.) – Indiana is among seven states rejecting President Barack Obama’s proposal to deal with a swell of health insurance cancellations forced by the Affordable Care Act.
The president’s plan allows health insurance companies to renew policies not in agreement with the healthcare law. About 4.2 million Americans have had their health care insurance plans cancelled, and the Indiana Department of Insurance has said about 108,000 Hoosiers will receive cancellation notices.
Indiana State Insurance Commissioner Stephen W. Robertson issued a scathing response to the suggestion Wednesday.
“Such action would seriously destabilize Indiana’s insurance market and create logistical chaos, fueling even more uncertainty for Hoosiers. Furthermore, we do not believe that IDOI has the authority under Indiana law to fulfill the President’s untimely request,” Robertson said in a news release.
As the Indiana Department of Insurance explains, the Affordable Care Act provided an “early renewal option” that effectively enables existing plans to delay new federal mandates for about another year so that individuals who are currently enrolled in those plans could transition more smoothly and budget accordingly.
Insurers that chose to offer an early renewal option worked with the department earlier this year in a timely and responsible manner to price their insurance products appropriately to comply with Indiana’s financial regulatory standards and general market stabilization functions.
IDOI planned and worked with insurance companies for months to get the proper rates and policy contract language approved and transferred to the federal government by its July 31, 2013 deadline so the health insurance plans would be available effective January 1, 2014.
Not every insurance carrier offered early renewal as an option to their existing customers. Some current insurance products will no longer sell in Indiana’s starting next year, the department said.