In response to pressure mounting due to millions of Americans having received notices informing them that their health insurance policies were going to be canceled as those plans do not meet minimum standards set forth by the Affordable Care Act, the Administration announced a one year transition policy for these plans.
President Obama announced this new policy that may allow individuals and small businesses whose coverage is being canceled to keep their coverage for an additional year.
WHAT DOES THIS MEAN?
For 2014, health insurance issuers may choose to continue coverage that would otherwise be terminated or canceled due to the ACA's reforms, and affected individuals and small business may choose to re-enroll in the coverage.
Insurance companies, however, are now left to decide whether or not to continue to provide these policies (that were set to be terminated on December 31st, 2013) for an additional year - or press forward with terming them January 1st, 2014.
Powter Advisors will continue to monitor all developments in the implementation of the Affordable Care Act, and will advise our clients as to their responsibilities under the new law.
For specific questions regarding this briefing, please contact your representative.