If the debacle with the launch of the online health insurance marketplace, Healthcare.gov, wasn’t enough, the AP is reporting that “a wave of cancellation notices (are) hitting individuals and small business who buy their own insurance.”


Medicare chief Marilyn Tavenner said it’s not the administration but insurers who are responsible for cancellation letters now reaching many of the estimated 14 million people who buy individual policies. And, officials said, people who get cancellation notices will be able to find better replacement plans, in some cases for less.

The Associated Press, citing the National Association of Insurance Commissioners, reported in May that many carriers would opt to cancel policies this fall and issue new ones. Administratively that was seen as easier than changing existing plans to comply with the new law, which mandates coverage of more services and provides better financial protection against catastrophic illnesses.

While the administration had ample warning of the cancellations, they could become another public relations debacle for President Barack Obama’s signature legislation. This problem goes to the credibility of one of the president’s earliest promises about the health care overhaul: You can keep your plan if you like it.

Read full story: “Health Policy Cancellations: New Blow for Administration” (AP via ABCNews.go.com)

On the SmallBusiness.com WIKI: Affordable Care Act

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