Millions of Americans will receive correspondence cancelling their health insurance in favor of insurance from the Affordable Care Act. Their policies presently do not meet the standards of the new law and the Obama administration has been aware of this for the past 3 years.
More than half of the 14 million Consumers who buy health insurance individually will be forced to buy a new policy as their current policies don't meet the principles of the new health law, according to a report by NBC.
AdvertisementThey will be paying a higher price for the new policy. Earlier the administration had specified that policies taken as early as March 23, 2010 could be kept on even if they did not meet the requirements of the new law. Later the same law specified certain changes and so the policies would have to be changed.
The administration knew that 67% clients on the individual market may need to cancel their policies, though; President Obama had stated in 2012, "If (you) already have health insurance, you will keep your health insurance."
According to The White House the people with cancelled policies would be moved to plans with better protections. "Nothing in the Affordable Care Act forces people out of their health plans," White House spokeswoman Jessica Santillo told the news organization.
References: Hannah Punitha (IRDA Licence Number: 2710062)