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The cancellations problem goes to one of Obama's earliest promises about the health law: You can keep your plan if you like it. The promise dates back to June 2009, when Congress was starting to grapple with overhauling the health care system to cover uninsured Americans.
As early as last spring, state insurance commissioners started giving insurers the option of canceling existing individual plans for 2014, because the coverage required under Obama's law is significantly more robust. Some states directed insurers to issue cancellations. Large employer plans that cover most workers and their families are unlikely to be affected.
The law includes a complicated "grandfathering" system to try to make good on Obama's pledge. It shields plans from the law's requirements provided the plans themselves change very little. Insurers say it has proven impractical. The cancellation notices are now reaching policyholders.
Tavenner blamed insurance companies for cancelling the policies and said most people who lose coverage will be able to find better replacement plans in the health insurance exchanges, in some cases for less money. Change is a constant in the individual insurance market, she added, saying that about half of plans "churn" over in any given year.
© 2013 Associated Press/AP Online under contract with YellowBrix. All rights reserved.
Cmd Spock Retired:
Posted: 2013-11-04 @ 11:05am PT
"Defending President Barack Obama's much-maligned health care law in Congress"
It's much maligned for a plethora of good reasons of which the potential data breach is only one. Everything about this program is a disaster waiting to happen, from its effect on the economy to issues like data breaches. Be afraid, very very afraid.