Why Florida Blue “Canceled” Insurance Policies
MIAMI (CBSMiami) – If you believe the headlines, millions of American’s health insurance policies are being canceled at the moment—that includes Florida where letters are hitting mailboxes canceling some 300,000 Florida Blue Policies.
CBS4’s David Sutta asked Bill Warren, of Benefits Design Resources, if the headlines are true.
“Well I think that’s a matter of interpretation and a little bit of exaggeration because these plans are not being terminated, people are basically being transitioned,” said Warren. “What insurance companies are doing is transitioning people from the existing plans to plans which are ACA compatible. Every insurance company is doing it,” said Warren.
Under the Affordable Care Act, insurance plans must meet minimum standards such as prescription drug, mental health, rehabilitation coverage, maternity leave, lab service and preventative wellness programs.
Many Florida Blue customers, like Dianne Barrette, are receiving letters from Florida Blue alerting them that their old policy does not include those benefits. But those letters are not cancellations, but rather offering to help transition to a similar plan.
“What I have right now is what I am happy with and I just want to know why I can’t keep what I have. Why do I have to be forced into something else?” said Barrette.
While the coverage may just be a transition, not a cancellation, the price for many, especially those with minimal coverage, may be shocking.
“I’m not going to try and sugarcoat this because some people are definitely going to see an increase in their premium,” said Warren.
Those making under $45,000 will likely pay less though because the government will subsidize part of the premium cost—such is the case for Barrette. Those making more than $45,000 will likely pay more.
“The more you make the more you are going to have to pay. The less you make the greater the subsidy is,” said Warren.
Those who will be transitioned as part of the change, will likely have received a letter or will get a letter within the next 30 days.