Friday, October 24, 2014

Affordable Care Act Insurer's New Contracts Contain An "Opt Out Clause"

By Coleen Elkins
The Supreme Court has been asked to determine if subsidies are legal in the Federal health insurance exchange. There have been multiple challenges to the way the law was written. Many read the law to say that subsidies are only legal in the state run exchanges. 

These challenges to the language in the law are coming to the attention of many who follow the law. If the Supreme Court rules that those whom receive reduced premiums and increased benefits through Federal subsidies can no longer do so their policies will revert to the retail price. People qualify for subsidies if they are low or moderate income households and paying retail may not be an option.

The insurers participating in the exchanges are being cautious as they know that most receiving subsidies will be unable to pay the retail price and will cancel coverage. Insurers are asking for the opportunity to opt out of offering benefits if that is the case. In some states they may still be forced to keep the policies in place.

It is important for the public to know and understand that these challenges could change their premiums and level of benefits.

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