Iowa will extend non-compliant ACA health plans
By Chelsea Keenan, The Gazette, Cedar Rapids, Iowa | |
McClatchy-Tribune Information Services |
"We have concerns about policy cancellations and the anxiety Iowans face when they receive cancellation notices," the insurance division said in a news release.
Insurance companies sent letters to millions of Americans this past fall informing them their plans would be canceled because they did not meet standards put into place under the ACA, which required plans to cover maternity leave and mental and preventive health as well as other benefits.
The Obama administration -- which promised Americans that if they liked their insurance, the could keep it -- quickly worked to appease these policy holders. In March, it told states they could choose to continue certain coverage that would otherwise be canceled.
"Iowans deserve predictability and stability in their health care coverage," said Gov.
About 330,000 individual and small group members will be affected by the extension, according to the governor's office.
As of Tuesday, 18 other states have taken similar action allowing plan extensions.
The decision greatly affects
"Preserving this option means that our members can continue to keep the health insurance plans they want, know and trust while still having the flexibility to move to new ACA plans if those would better meet their needs," said
"In fact, the material differences between an ACA plan and
The Insurance Division acknowledged the ruling could result in a small price increase and unsettle the insurance exchange marketplace by creating a two tracks -- one pool with compliant plans and one pool without.
Not everyone was pleased with the announcement.
"We're obviously disappointed with the decision," said
Lyons said this decision affects thousands of Iowans on both sides of the equation because these two pools will create instability in the marketplace as well as put pressure on compliant plans, raising costs.
"This is another example of how the rules are continually changing after they've been in place," he said "It creates a very difficult and unstable market."
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