Yesterday, we told you President Obama decided that insurance companies will not be required to upgrade their plans to fit the ACA’s requirements for 2014. However, it looks like the change could lead to increased premiums; also, Washington and Arkansas, have indicated that they will not allow insurers to reinstate canceled plans.
Insurance companies will now be able to decide if they want to continue to offer the non-complying plans in 2014, but they will need their state’s permission. In addition, insurers will have certain requirements including notifying customers of the benefits their plans exclude and informing their customers about other options available (such as the options available through the exchange).
Insurers warn that changing the rules may destabilize the market and lead to higher premiums.
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