The nation begins Year 2 under the Individual Mandate of the Affordable Care Act (ACA) on January 1, 2015. Here’s what you can expect to happen this fall in the Individual Health Insurance industry:
Many people chose to keep their pre-ACA health insurance policies in 2014. One year ago, that was an attractive option if the premium and/or benefits on your policy were better than what was available in the ACA compliant plans. It was marketed as a method that would give you a one year deferment from higher premiums and lower benefits. When your policy renewed in 2014, the pre-ACA plans would end and everyone would be required to select an ACA compliant policy.
That expectation changed when the Nebraska Department of Insurance ruled that pre-ACA plans could remain in-force until 9/30/16; it was left to each insurance company in Nebraska to determine if their pre-ACA plans would continue. This list pertains to Individual policyholders only.
• BlueCross BlueShield and United HealthOne / Golden Rule policies WILL be allowed to remain in-force until 9/30/16. Policyholders will receive renewal notices that include premium adjustments if you choose to continue on the pre-ACA plan and options for changing to an ACA compliant plan.
• CoventryOne and Assurant Health policies will NOT be allowed to remain in-force. Policyholders will be required to convert to an ACA compliant plan when their policy renews.
• If you have pre-ACA coverage from a different company, contact Customer Service to learn what options you will have in 2015.
Those who selected new individual policies in 2014, either by purchasing directly from an insurance company or by enrolling through the Health Insurance Marketplace, will renew their coverage on January 1, 2015.
• All ACA compliant plans renew on January 1st, regardless of the effective date of the policy.
• The Kaiser Family Foundation report indicates that 42,975 Nebraskans selected a Marketplace plan (http://kff.org/health-reform/state-indicator/state-marketplace-statistics/). There are two components to renewals of these policies:
• Financial assistance including the Advance Premium Tax Credit and Cost Share Reduction Subsidy; and
• Individual health insurance policy from an insurance company
• Healthcare.gov has some renewal information for Marketplace policies – https://www.healthcare.gov/blog/we-are-making-it-easy-for-you-to-keep-your-marketplace-coverage-next-year/
• This will be the first renewal period for Marketplace policies. We recommend that all Marketplace enrollees work with their agent to be certain that your 2015 enrollment is accurate.
Those who enrolled in a 2014 policy directly with an insurance company will be notified of benefit changes and premium changes for 2015 as soon as the final rates for next year are approved. This will likely be late October or early November.
Open Enrollment for 2015 begins November 15, 2014 and continues through February 15, 2015. During that time, anyone can select a health insurance policy for 2015. Enrollments are submitted directly to an insurance company or through the Marketplace. Those who are eligible for financial assistance must go through the Health Insurance Marketplace (www.healthcare.gov) to access those benefits.
We expect websites and technology to be much improved over last year. However, there will be challenges created by a shorter Open Enrollment (90 days compared to 165 days) and the late availability of 2015 rates. Call your agent early to review your options for next year.
by Chris McPike, Vice President
ComPro
402-488-5100