By Kathryn Mayer
October 29, 2013 •
The stumbling rollout of the Patient Protection and Affordable Care Act just hit another hurdle: Widespread reports the law is forcing millions nationwide to lose their insurance plans.
NBC News sounded the alarm this week when it reported more than 7 million people will lose their coverage as a result of PPACA’s new standards, coupled with normal market turnover.
Sources told NBC News 50 percent to 75 percent of those who buy health plans on the individual market would receive a cancellation letter in the next year, if they haven’t already.
Though some seemed shocked by the news, a number of insurance experts say there’s nothing new about the reports.
“We knew the market would be changing,” said John Greene, vice president of congressional affairs at NAHU, in Washington D.C. “I think what’s happened is that is D-Day is here and the new market reality is here.”
Greene said he couldn’t comment on the number reported by NBC in particular, but said PPACA has a big effect on existing plans, calling the changes to individual plans “intentional.”
PPACA requires all health plans to contain a basic level of benefits, such as preventive care services. Policies that don’t meet those standards won’t be permitted next year unless they existed in their current form in 2010.
For those in the know about the law, the numbers about existing plans were there all along, though they weren’t publicized before. Language in PPACA regulations from July 2010 stated “40 percent to 67 percent of people” in the individual market normally change plans in a year, and thus would no longer be in grandfathered plans.
“NBC ‘scoop’ cites ‘normal turnover in the indiv insurance market’. That’s a) not new b) not caused by #ACA c) the problem #ACA will solve,” White House principal deputy press secretary Josh Earnest tweeted Monday.
Edited by user
12 years ago |
Reason: Not specified
