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1M CA Insurance Policies Have Been Cancelled

From an unfazed Associated Press:

Calif. Insurance Commissioner: More Than 1M Californians Having Insurance Cancelled Due To ACA

November 12, 2013

SACRAMENTO, Calif. (CBS Sacramento/AP) — Health insurer Anthem Blue Cross of California has agreed to a two-month extension of about 104,000 individual policies after failing to give the required 90-day cancellation notice, state Insurance Commissioner Dave Jones announced Tuesday.

The policies had been set to expire on Dec. 31 but will be extended until Feb. 28 for those who choose to re-enroll. Notices informing customers of the extension will be sent out this week, Anthem said.

Jones said the company notified the Department of Insurance that it failed to give enough notice because of a computer glitch and voluntarily offered to extend the policies.

Anthem spokesman Darrel Ng said a subset of individual customers was “inadvertently omitted from the original mailing” notifying them that their policies were being terminated. He declined to say how many Anthem customers were being notified their policies were ending.

What a weird article. Why start off with this piddling news, when you have this to report:

More than 1 million cancellation notices have been sent to Californians as the Affordable Care Act begins allowing individuals to buy insurance through exchanges, Jones said. The federal law requires policies to offer minimum levels of coverage, forcing companies to terminate many existing plans. But Jones said that under the law, insurers have another year to do so.

But the AP buries its real news (1 million cancellations in California alone) in the final paragraph of this article. And even then they still try to blame the insurance companies. Whom, we’re told, have another year before they have to cancel their old policies. Whom, we’re told, have another year before they have to cancel their old policies.

If this is true, then it looks like Obama planned for these cancellations to come next year, after the midterms. And the insurance companies are crossing him up.

But also note that this is actually very bad news. Because if insurance companies have a full year to terminate their old plans, then the current cancellations could just be the tip of the iceberg. Imagine the bloodbath next year, when they all have to cancel all their old plans That is probably when we are going to get to the 93 million cancellations the 2010 federal registry told us about.

This article was posted by Steve on Wednesday, November 13th, 2013. Comments are currently closed.

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