Health Policies Being Discontinued Because of ACA

By: Alyssa Fenske Email
By: Alyssa Fenske Email

LANSING (WILX)-- If you got a letter in the mail telling you your insurance policy will be discontinued, you're not alone. Thousands of policies are will be no good after January 1st because of the new health care law.

Trevor Brooks got his notice in the mail a few weeks ago.

"It's basically a letter that said the plan you're on is no longer available. You're going to have to move to a new plan, and here is the new plan that we're recommending for you," said Brooks.

Michiganders have been getting this letter over the past few months, giving them until December 31st to find a new policy before their old one is discontinued.
In most cases the new options aren't any cheaper.

"Our deductible is going to go from $2,500 to almost $13,000 dollars," said Brooks.

"There's a good chance it's going to cost you more, but that's because it contains more benefits," said Caleb Buhs, with the Michigan Department of Insurance and Financial Services.

The policies being canceled don't meet the standards of the affordable care act.
There are ten requirements all policies must meet for them to be acceptable.

"The big one that we see today is prescription drug coverage. A lot of peoples plans do not cover prescription drugs, or it's a separate policy. Under the ACA, prescription drug now needs to be included," said Michael James, attorney for Fraser Trebilcock.

James added that polices are also being discontinued because they don't meet the ACA coverage levels. All policies must meet the bronze, silver, gold, or platinum, standards.

All insurance agencies are required to give customers ninety days notice before a policy is discontinued. Most notices should have been sent out, but if you haven't gotten one yet it's always good to double check with your local agent,

"What I'm encouraging folks to do is to really look at their options," said James.

And that's exactly what Brooks plans on doing before he makes any final decisions.

"Luckily my insurance representative came in and sat down with me. That's something I think everybody needs before they're going to understand the consequences," said Brooks.

People who received letters of cancellation can choose not to continue with any health plan, but remember, you'll have to pay a penalty for not having health insurance.

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