on November 18, 2013 by admin in Insurance Industry, Comments (0)

Obamacare fix "a logistical nightmare," insurance industry consultant says

(CBS News) The confusion over the Affordable Care Act only seems to deepen for many Americans trying to figure out what exactly is going to happen to their health insurance.

President Obama is now calling for a one-year extension of policies that insurance companies have already canceled, but the companies and state regulators are saying it's not that simple.

It's the customers who are caught in the middle.

In the next week, millions of people who received cancellation notices of their health care insurance may be getting another letter in the mail, this time a way to extend coverage that was canceled.

"It's a logistical nightmare that if done is likely to lead to serious customer service problems," said Robert Laszewski, a prominent insurance industry consultant with Health Policy and Strategy Associates.

Mr. Obama is pressing insurance companies to re-issue canceled plans, but whether that happens also depends on states' insurance commissioners.

And while a majority tells CBS News they continue to research the president's fix, at least three states - Rhode Island, Vermont and Washington - have already rejected it.

Meanwhile, the enrollment clock is ticking, and insurers are staring down Dec. 15. It is a key date on the calendar for anyone wishing to have coverage at the start of the new year.

Some insurance companies may send follow-up letters similar to one obtained by CBS News.

It was addressed to a canceled policyholder in late September and included an option to re-enroll for coverage with their original insurance company through Nov. 30, 2014, perhaps a temporary solution for people who remain confused about their coverage, how much their premiums will cost and whether they can keep their doctor.

Anyone re-enrolling now will still have to apply for coverage under the health care law with a compliant plan late next year. The White House is hoping the HealthCare.gov website's problems are a distant memory by then. The deadline for the planned fix for the website is in two weeks.

Article source: http://www.cbsnews.com/8301-18563_162-57612698/

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