Obamacare non-compliant plan revisions

Last November, President Obama announced a revision to the ACA where individuals could extend their non-compliant plans for an additional year in an effort to ease tensions and transitions into new programs that went live year start, 2014.  Specifically, ones that had been recently cancelled by insurance carriers due to being non-Obamacare-Compliant.  The decision to enact this extension was left to individual state insurance commissioner offices as well as health insurers.

Washington State decided that allowing cancelled health plans “was not in the best interest of the (Washington) health insurance market and would ultimately harm consumers.” [1]

On Wednesday, March 5th, the Obama administration announced that individuals could once again extend these non-compliant plans by an additional two years.  However, this announcement does not affect Washington, as the first extension was not granted  - these plans no longer exist in the state.

Like Washington, several states decided against extending non-compliant plans.  Reasons cited include instability of the market, reduction of benefits and mostly, it would have been a costly maneuver to add these plans back into the framework.  



[1] www.insurance.wa.gov “President Obama’s decision to extend non-compliant health plans does not apply to Washington state” March 6, 2014

 

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