BioCentury
ARTICLE | Politics & Policy

Insurance companies concerned about Obama fix

November 15, 2013 2:02 AM UTC

Health insurance companies expressed concern that the Obama administration's decision to allow renewals of canceled insurance policies will destabilize the insurance market. President Obama said on Thursday state insurance commissioners will be given the option to allow insurers to renew policies for 2014 that were canceled because they didn't meet minimum standards created by the Affordable Care Act (ACA). The White House said HHS will consider extending the policy to future years. If insurers offer renewals of canceled policies, they will be required to inform patients about the provisions that do not meet ACA standards and also inform them that alternative plans are available through health exchanges.

America's Health Insurance Plans, a national trade group for the health insurance industry, said the new policy "could destabilize the market and result in higher premiums for consumers" by reducing the number of younger and healthier people who purchase coverage in the exchanges. ...