Obama to Allow Sale of Canceled Plans

By: Associated Press
By: Associated Press

WASHINGTON (AP) -- President Barack Obama says health insurance companies can continue to sell policies canceled under his health care law for at least one more year to existing customers.

Obama is trying to head off a political furor created by a wave of cancellation notices hitting people who buy their coverage individually, as well as some small businesses. Their current plans don't meet requirements of the new health care law.

White House officials say a letter going out to state insurance commissioners will specify that current plans sold to existing customers will not be considered out of compliance with the health care law in 2014.

While the administration is granting new flexibility, it remains to be seen if state regulators and insurance companies will exercise the option.


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