Yesterday morning, President Obama announced that 2014 sales of previously-canceled individual health plans that don’t meet ACA standards would be allowed to be issues and stay in force for another year.
The change will offer a temporary “fix” to the millions of consumers whose policies have been canceled or altered as a result of healthcare reform.
That means carriers offering policies deemed not “ACA compliant”—and the producers who sell them—can continue to offer the same coverage to insured through the coming year.
Insurers will be required to notify clients that “alternatives exist” under the ACA, including the availability of tax credits, and to point out the areas where their plans fall short of government requirements. These government requirements are generally consumer friendly and could provide for a more complete health insurance coverage.
This option will only apply to those who have lost their insurance coverage. Carriers and producers cannot offer such plans to other Americans as it would threaten the ACA’s financial viability.
The insurance companies policies will continue to be regulated under the states’ insurance department.
If you have further questions related to your options and/or responsibilities as an individual employer under the Affordable Care Act or would like and evaluation, please contact your Henry & Horne accountant.
By Gary W. Fleming, CPA