Illinois Approves Extension of Canceled Plans
The state of Illinois has decided to give insurance companies the option to extend health insurance plans that were scheduled to be cancelled at the end of the year.
It’s estimated that nearly 200,000 Illinois residents have received cancellation letters in the mail indicating their health plan was going to be canceled because it wasn’t compliant with new standards set forth in the Affordable Care Act. These individuals now may be given the option to keep their plan for another year.
It will now be up to the insurance companies to decide if and how they will extend coverage. We expect more details will become available very soon in response to this announcement and will notify you accordingly.
he president had previously promised that anyone who was happy with their current plan would be able to keep it if they wanted to, but was forced to scuttle that message and offer the extensions, as thousands of policyholders nationwide received cancellation notices from their insurers.
Illinois joins Florida, North Carolina, Ohio, Kentucky, Kansas, Oregon, South Carolina, Colorado, Hawaii and Texas in allowing carriers to renew existing health insurance policies even if they don’t meet all the requirements for health plans set to go into effect Jan. 1.
The Illinois Department of Insurance “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,” Andrew Boron, director of the Illinois Department of Insurance said in a statement. “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.”
More than 185,000 Illinois residents have gotten cancellation notices. About 185,000 people in the state were insured under individual policies in 2012, the state said.
The state’s largest insurer, Blue Cross and Blue Shield of Illinois, said in a statement it will work to continue coverage for “impacted members.”
“We are reviewing the announcement from the Illinois Department of Insurance and will determine next steps as we keep our members informed of their options both on and off the exchange,” the carrier said in the statement. “We will reach out to consumers who may have new options as a result of the Illinois Department of Insurance’s announcement.”