A Look at the Affordable Care Act: Options for Individuals with Canceled Insurance

A Look at the Affordable Care Act: Options for Individuals with Cancelled InsuranceEach month AssuredPartners NL will discuss a different aspect of the Affordable Care Act. Stay tuned for more updates on the second Thursday of each month. Click here for more Affordable Care Act blogs.

In late 2013, millions of Americans received notification that their individual health insurance policies were being canceled because they did not comply with the new Affordable Care Act reforms that took effect in 2014. In response to this issue, the Department of Health and Human Services issued an announcement outlining two new options for individuals whose policies had been canceled under the Affordable Care Act. These options include*:

1. Individuals notified that their individual market policy would not be renewed will be eligible for a hardship exemption from the individual mandate. The hardship exemption is for individuals who have suffered a hardship regarding the capability to obtain coverage under a qualified health plan. Hardship exemptions are available for a range of time (from one month to many months), in which:

  • An applicant experienced financial or domestic circumstances that caused an unexpected and significant increase is essential expenses.
  • The expense of purchasing minimum coverage would have caused the applicant to undergo serious deprivation of necessities including food, shelter, and clothing.
  • The applicant has experienced other factors similar to the above that prevents them from securing minimum coverage.

2. Individuals notified that their insurance market policy would not be renewed may enroll in catastrophic coverage, if it’s available in the individual’s area. To purchase catastrophic coverage, individuals will need to complete a hardship exemption form. Catastrophic coverage is available to individuals who are eligible if:

  • The plan options available in the Exchange for the individual’s area are more expensive than their cancelled insurance policy and if catastrophic coverage is available in the individual’s area.

If you’re facing canceled coverage, be sure to check out these two options. The Affordable Care Act can be complicated to navigate. If you have questions regarding your coverage, or coverage for your business, our team of benefit specialists can help. To learn more or contact an agent, visit: AssuredPartners NL Employee Benefits.

*Source: Zywave

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