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View Diary: Another Health Insurer Caught Falsely Cancelling Thousands of Health Plans (161 comments)

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  •  But then what is the basis for the lawsuit? (0+ / 0-)

    If they can arbitrarily change their policy, at any time, what grounds do the customers have?

    The man who moves a mountain begins by moving away small stones. -Confucius

    by Malachite on Sun Nov 10, 2013 at 06:58:43 PM PST

    [ Parent ]

    •  Well, I don't know as much about health insurance, (3+ / 0-)
      Recommended by:
      HiBob, wu ming, kefauver

      but when I worked in property and casualty insurance, there were laws, both state and local, that governed when or why or how a policy can be cancelled. I think when you conceal facts, you might be running afoul of that.

      •  The grandfathered plans are allowed via ACA (7+ / 0-)

        That's the problem with what BC in California did -- they cancelled plans prematurely, leaving customers with the impression that they could not continue with their existing plans. But they could -- explicitly as part of ACA.  Health insurance is a highly regulated industry (I know, I work in it); they can't just make stuff up, or deceive their customers. So, I suspect they will be forced to reinstate the grandfathered plans, or they will get sued up the wazoo, and lose.  And that's what should happen because millions of consumers will continue on grandfathered plans next year.

        The civil rights, gay rights and women's movements, designed to allow others to reach for power previously grasped only by white men, have made a real difference, and the outlines of 21st century America have emerged. -- Paul West of LA Times

        by LiberalLady on Sun Nov 10, 2013 at 07:54:46 PM PST

        [ Parent ]

        •  I understand that, I don't think Malachite does nt (0+ / 0-)
        •  Here is what I didn't grasp I think... (3+ / 0-)
          Recommended by:
          second gen, wmspringer, Vyan

          and forgive me for having the brain of a slug today. When we say canceled prematurely, we mean literally prior to the existing plan year's end, essentially violating the existing contract (for that contract year). We don't merely mean that the insurance company let the plan expire naturally at the plan year's end, but then opted not to continue offering it.

          Can the contract year begin and end in any arbitrary month? It seems that for me it has always begun on January 1st, with the open enrollment period restriction only being allowed to be violated in certain circumstances... such as a job transition. And even then the plan "year" still terminated on Dec. 31st, so my deductibles reset on Jan. 1.

          The man who moves a mountain begins by moving away small stones. -Confucius

          by Malachite on Sun Nov 10, 2013 at 09:04:20 PM PST

          [ Parent ]

          •  Those are good questions (1+ / 0-)
            Recommended by:
            second gen

            And I'm not sure of all the answers.  I think you're right on the first point -- the grandfathered plans did not expire naturally, on their own time.  But the insurers "cancelled" the plans, blaming ACA.  That way, they can jack up rates now instead of later.  

            I think you're probably right that most plans begin on January 1, but some don't.  (I only know this because I work for a health insurer -- one, that for the moment is following the law by continuing to administer grandfathered plans.)  ;-)

            The civil rights, gay rights and women's movements, designed to allow others to reach for power previously grasped only by white men, have made a real difference, and the outlines of 21st century America have emerged. -- Paul West of LA Times

            by LiberalLady on Sun Nov 10, 2013 at 09:14:37 PM PST

            [ Parent ]

          •  Well, sort of. (0+ / 0-)

            An insurance plan RENEWS every year. And you have to sign a new contract, every year. So they didn't really cancel it mid term. But, unless they made any major changes, it was considered grandfathered in and didn't need to cancel for the higher rates.

            As for when the contract is up, I guess it depends. I think individual insurance is probably a year from whenever you signed up. Group insurance through an employer is usually Jan 1.

            And it's okay to be confused. Even as I was replying, I'm kind of confused myself. LOL

            The employers and the insurance companies have been making all sorts of changes since the ACA was signed, and blaming the ACA for every increase or issue they've had. Most of it isn't true.

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