Individual Health Insurance Plans in Illinois Extended for a Year

There is good news for people with individual and small group health insurance plans Illinois.  Many of the more than 185,000 people who received cancellation notices from their insurance company will have a year long reprieve from finding new coverage.  After an outcry from Americans, President Obama has urged state insurance regulators to make exceptions to the Affordable Care Act requirements.  Many existing health insurance plans do not meet all of the requirements, causing hundreds of thousands of people to get a cancellation notice.  If your insurance plan was effective prior to October 1 of this year, you will now have until October 1 of 2014 to select a new insurance plan.  This is great news to Americans who were scrambling to make health care plan decisions by January 1.  WGN’s Peter Frost discussed the details for Illinois residents in the story “Illinois to let companies sell existing health insurance plans.”

Blue Cross and Blue Shield of Illinois, the largest insurance company in the state, said that they will be contacting people who received cancellation notices to tell them their new options.  More than 475,000 people in Illinois had individual health insurance policies as of data collected in 2012.  Some of the people whose plans do not meet Affordable Care Act requirements will receive federal tax credits to help pay for new insurance plans.  But many others are upset because their new plan options cost double what their prior health insurance plans cost.  So far, 15 states have told their insurers that it’s okay to extend current insurance plans for another year.  Some states are not allowing this plan extension though, despite the President’s request for them to do so.  Some insurance companies worry that extending old plans will keep too many people out of the health insurance exchanges, which could raise those plan costs.  Those people who are buying plans in the health insurance exchanges have until December 23 of this year to purchase a plan that will go into effect January 1.

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