[November 25, 2013]SPRINGFIELD — The Illinois
Department of Insurance announced Friday that it will follow
President Obama's Nov. 14 recommendation and allow insurance
companies to renew a number of health plans in the individual and
small-group markets without being penalized, although the plans do
not meet certain Affordable Care Act requirements.
Illinois joins Florida, North Carolina, Ohio, Kentucky, Kansas,
Oregon, South Carolina, Colorado, Hawaii and Texas in giving
insurance companies the choice to renew existing health insurance
policies with current policyholders.
"DOI came to this decision
based on the concerns raised by Illinois consumers and the guidance
from the U.S. Department of Health and Human Services," said Andrew
Boron, director of the Illinois Department of Insurance. "Allowing
companies to renew current plans gives consumers more time to
evaluate their options and will provide a smoother transition into
the health care coverage system envisioned by the ACA."
The Illinois Department of Insurance will immediately work with
insurance companies who choose to extend the terminated or canceled
coverage to quickly renew such policies. In step with President
Obama's announcement, policies in effect on Oct. 1, 2013, in the
individual or small-group market can be renewed for a policy year
starting between Jan. 1 and Oct. 1, 2014.
According to notifications received by Department of Insurance,
approximately 185,340 people in Illinois have been advised by
insurers so far in 2013 that their coverage has been canceled or
terminated. The department's most recent data indicate that more
than 476,000 Illinois residents were insured by private individual
policies in 2012.
Also on Friday, federal authorities pushed back the deadline from
Dec. 15 to Dec. 23 for enrolling in a plan that begins on Jan. 1.
The change gives people eight additional days to consider their
options.
For Illinois consumers, the ability to renew plans will depend on
their insurance company's decision of whether or not to exercise
this option. Consumers should contact their local insurance agent to
discuss what options are available to them.
In addition, according to the federal government, any insurance
company choosing to renew a noncompliant plan in 2014 should notify
consumers that they can purchase coverage through the Health
Insurance Marketplace, where they may qualify for federal financial
assistance, which may include premium tax credits for small
employers and other subsidies for individual consumers. This notice
should also advise consumers about the protections under the
Affordable Care Act that they are forgoing by renewing their current
plans, including certain "essential health benefits" that may not be
offered through existing plans. Such protections will be required in
plans being sold in the Health Insurance Marketplace.
After Dec. 31, insurance companies will not be permitted to sell
any new plans that do not meet the Affordable Care Act standards.
Consumers seeking health coverage should continue to visit
http://getcoveredillinois.gov/ to learn about new coverage
options available through the marketplace. Those who may consider
keeping their current policy should compare it with new plans
offered through the marketplace that cover more benefits, sometimes
at a lower cost.
The Department of Insurance is also recommending that consumers
who have questions regarding differences between a continuation of
their current coverage and benefits afforded to them through a plan
on the Health Insurance Marketplace should call the department's
Office of Consumer Health Information at 877-527-9431.
The following insurers have received
approval to offer coverage through the Illinois Health Insurance
Marketplace:
Aetna Life
Insurance Co.
Coventry Health and
Life Insurance Co.
Coventry Health
Care of Illinois Inc.
Health Alliance
Medical Plans Inc.
Health Care Service
Corp., a mutual legal reserve company (Blue Cross)
Humana Health Plan
Inc.
Humana Insurance
Co.
Land of Lincoln Mutual Health Insurance
Co.
"Making certain that Illinois residents have access to quality
affordable health care remains one of our top priorities," continued
Boron. "(Friday's) actions reinforce our commitment to a culture of
coverage."
