Health Insurance Cancellations — a Personal Wake-Up Call

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The author of this article got got a cancellation letter from Blue Shield, printed with graphs and pie charts, and a comparing the old insurance plan – the one being canceled – with a new plan recommended by Blue Shield. Photo by Daniel Moore/KALW Crosscurrents

By Daniel Moore, KALW Crosscurrents

Millions of Americans have received letters from insurance companies in the last few months, canceling their health plans. It is part of the transition to the Affordable Care Act, and it has sparked anger and confusion. President Obama has been trying to address the concerns. Last month, he said this:

“…virtually every insurer is offering new, better plans and competing for these folks’ business. I realize that can be scary for people if they just get some notice like that. So we’ve got to make sure that we’re getting them the right information.”

So, what is the right information? Well, it is important to note that the new law will mostly affect just a portion of Americans who buy their own insurance. In California, that’s just over 2 million people. About a million received letters canceling their health plans. The law requires that all insurance plans offer “essential benefits” like emergency services, maternity care, mental health and prescription drugs. And these plans do not comply.

As a result, many people are being forced to buy insurance with higher monthly premiums. And it is not just an increase in benefits that is causing the costs to rise.

Read the complete story at KALW Crosscurrents. 
 

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