"The president says his administration will no longer require insurance companies to scrap plans that fall short of the new health care law's minimum coverage standards."
An Associated Press survey finds more than 4.2 million Americans who buy their own health insurance have received cancellation notices, but President Barack Obama has announced changes intended to undo that.
The president says his administration will no longer require insurance companies to scrap plans that fall short of the new health care law's minimum coverage standards. Speaking at the White House today, Obama said he hears Americans who are upset about losing their health insurance "loud and clear" and wants to be able to tell them that "the Affordable Care Act is not going to be the reason why insurers have to cancel" their plans.
Shortly after Obama spoke, however, the major industry trade group warned that prices might rise as a result of the new policy. America's Health Insurance Plans says changing the rules now "could destabilize the market and result in higher premiums for consumers."
The head of the National Association of Insurance Commissioners also had words of caution. Louisiana Insurance Commissioner Jim Donelon says the cancellation notices have already gone out to policyholders and rates have already been approved for 2014.