SalemNews.com, Salem, MA

Nation/World

December 27, 2013

Reversal on cancellations elicits mixed response

RALEIGH, N.C. (AP) — A month after President Barack Obama announced people could keep insurance policies slated for cancellation under the federal health overhaul, the reversal has gotten a mixed response from insurers, state regulators and consumers.

Many consumers complained in October and November after insurers notified them that their individual policies were being canceled because they did not cover pre-existing conditions, hospitalization, prescription drugs or seven other basic benefits required under the law. In pitching the overhaul, Obama had long promised that people who liked their policies could keep them.

Then Obama announced Nov. 14 that companies could continue existing policies that don’t meet the minimum requirements if state regulators approved.

Reporting by The Associated Press shows that older policies are being allowed to continue in 36 states, either because officials allowed it after Obama’s announcement, decided not to intervene in any way or had made a decision earlier in the year to extend noncompliant policies for a period of time.

Even so, insurers were given a choice of whether to continue the policies, and some declined to do so.

In Kentucky, insurers Humana, United Healthcare and Assurant chose to extend old policies, while Anthem and Bluegrass Family Health opted against it. Seven companies in South Carolina are extending individual plans the federal law considers substandard, while six companies are extending plans in the small group market. Twenty are not participating.

In North Carolina, only Blue Cross and Blue Shield, which controls about 80 percent of the state’s market for individual and small-business policies, offered to renew plans covering 474,000 people that had been slated for cancellation. North Carolina’s insurance commissioner allowed the company to raise premiums by between 16 percent and 24 percent.

Prices on noncompliant policies are rising in other states, as well. Anthem Blue Cross in Maine plans to raise premiums by an average of 12 percent on its no-longer-canceled policies. The Blue Cross provider in neighboring New Hampshire expects an average 7 percent increase, an amount that is in line with previous years’ premium increases.

Text Only | Photo Reprints
Nation/World

Local News
  • Ex-Market Basket boss wants to buy company

    July 24, 2014

  • Court finds Danvers nursing home at fault DANVERS -- The estate of an elderly woman who died after a fall and weeks of neglect at a Danvers nursing home has won a $14.5 million verdict in a wrongful death and negligence case. A Middlesex Superior Court jury awarded the estate of Genevieve Ca

    July 24, 2014

  • chism2 [Duplicate] Chism arraigned in second attack

    BOSTON -- When the woman came out of the bathroom, accused murderer Philip Chism was standing a foot in front of her. He put his hands around the clinician's neck, started choking her and pushed her up against a cinder block wall, a prosecutor said.

    July 24, 2014 3 Photos 7 Stories

  • 140723_SN_DLE_PROTESTERS4 Danvers Market Basket forced to toss food

    DANVERS -- Cars peppered the Market Basket intersection Wednesday afternoon with honks supporting grocery chain workers, who held signs calling for the reinstatement of fired CEO Arthur T. Demoulas. But the latest development in the grocery chain spe

    July 24, 2014 5 Photos 6 Stories

  • Scuba diver found off Marblehead identified MARBLEHEAD -- The scuba diver who died in an apparent drowning Tuesday off the coast of Marblehead was identified Wednesday as 58-year-old Gregory Cole of Westfield. The Essex District Attorney's Office said the state medical examiner's office will c

    July 24, 2014