November 14th, 1013 – Today President Obama said insurers may renew certain individual and small group health insurance plans for 2014 without having to comply with new Affordable Care Act (ACA) requirements scheduled to take effect on January 1, 2014.
However, ultimately it is up to each states’ governor and insurance commissioner if they will allow insurers to continue to offer plans that may have otherwise been cancelled until the end of 2014.
Additionally, it’s up to insurance companies to extend that offer to customers. Insurers that elect to take advantage of the transitional policy are required to give notice to their customers.
While it sounds good, insurance companies will be concerned that this may reduce the already low number of people signing up for the new 2014 plans, which could throw off the financial models and result in higher prices next year. So, stay tuned to find out how Colorado and its insurance companies respond to this.