So - I've Received Notification that my Pre-ACA Policy is Cancelled

[cadylou]

I have a GRANDFATHERED policy & received a notice from Coventry that they are dropping my health coverage as of 12/31/2014. My effective date for this policy was well before the law was passed - 4/1/2009.

How can they do this? They are saying that if I don't do anything they'll automatically put me in some lousy Bronze plan they have which more than doubles my rate.

I've sent a note to my rep at Coventry & will file a formal complaint with the DOI, but I guess I don't understand how they can do this. My clients are getting letters, but they were not in a grandfathered plan, so you can imagine my surprise.

Thoughts?

 

[GreenSky]

Yeah, I have a thought. Elections have consequences.

Rick

 

[cadylou]

Agreed - but I wondered if any other agents have had clients call & say that this same thing has happened to them. . . .I'm mystified. Grandfathered policies were supposed to stay in effect if you paid your premium. Is that no longer the case?

 

[somarco]

Grandfathered plans can only stay in existence as long as the carrier still offers that plan. Carriers are not required to continue plans forever.

Now if you were singled out for cancellation, that is a different story. But if Coventry is discontinuing all grandfathered plans in your state you really don't have a legitimate case.

 

[tonyisme]

Write to whitehouse.gov and dept hhs immediately. The more that do this the better. You are only one of hundreds of thousands who this will happen to. Grandfathereds plans can't "open their doors" to new business unless a Special enrollment event occurs.

 

[cadylou]

Grandfathered plans can only stay in existence as long as the carrier still offers that plan. Carriers are not required to continue plans forever.

Now if you were singled out for cancellation, that is a different story. But if Coventry is discontinuing all grandfathered plans in your state you really don't have a legitimate case.

Under the new law it was understood that they can't "offer" the plan anymore - since it wouldn't meet ACA requirements, but I didn't think they could just drop them. If so, I'll be an uninsured insurance agent . . . .wow!

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Grandfathered plans can only stay in existence as long as the carrier still offers that plan. Carriers are not required to continue plans forever.

Now if you were singled out for cancellation, that is a different story. But if Coventry is discontinuing all grandfathered plans in your state you really don't have a legitimate case.

I'll see what my rep over there says. I didn't know they could just not allow people to keep them under the law. The way it sounds in the ACA is that grandfathered plans are exempt from the law since they took effect prior to it being signed. Maybe I didn't understand this - but I can tell you - I'm not alone in interpreting it that way. . . .They should have just said that NO ONE would be able to keep any pre-ACA plans. It would have been a more honest statement. At any rate - I can't pay that premium, so . . . .that's it. End of story. May as well cancel my insurance now & put that money in my own bank account.

 

[GreenSky]

.They should have just said that NO ONE would be able to keep any pre-ACA plans. It would have been a more honest statement.

It also would have been more honest to say if you like your plan you can't keep it. It would have been more honest to say if you like your doctor you can't him/her.

It would have been more honest if Obamacrap wasn't designed to fail to force us into single payer.

Lots of honesty issues here.

I understand your pain but if you are low enough income you should be able to receive a subsidy on the new, improved high priced plan and higher out of pocket costs.

Rick

 

[cadylou]

Nope - no subsidy for me. I refuse to pay the ransom . . . . so, I guess I'll just do short term and pay a penalty or be an "uninsured, insurance agent" . . .

 

[bluediamond]

I would imagine sooner than later that many carrier's will cancel their grandfather plan's due to lack of participation and premium's going into that block of business to pay claims.

 

[cadylou]

I would imagine sooner than later that many carrier's will cancel their grandfather plan's due to lack of participation and premium's going into that block of business to pay claims.

Well, I guess I'll have to notify my clients who are grandfathered that it doesn't matter at all . . . .