Monday, November 25, 2013
 
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Dept. of Insurance moves to allow consumers to continue current coverage into 2014

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[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.

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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."

[Text from Illinois Department of Insurance file received from Get Covered Illinois]

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