Virginia Permits the Extension of Existing Health Insurance Plans

Last night the Republican controlled Virginia General Assembly voted to pass Senate Bill 5014 and House Bill 5011. These bills are identical and once signed by the Governor will allow health insurance providers in Virginia the option to renew insurance plans that would otherwise be required to be cancelled, discontinued or no longer offered because they do not meet the essential benefit requirements of the federal Patient Protection and Affordable Care Act.

This fall, hundreds of thousands of Virginians are scheduled to receive letters, if they haven’t already, from their insurance providers informing them they cannot renew their non-ACA compliant health insurance plan. The bills passed last tonight do not mandate that insurance companies continue to offer non-compliant policies, as doing so would exceed the authority of the General Assembly. Instead, the bills give insurance companies the option to renew plans that have not yet been cancelled, potentially saving individuals money.

If you think this may benefit you, we suggest you contact your insurance company to see if this option will apply to your plan or give us a call here at 301-948-5800.

Source: Jeffrey L. McWaters, Member, Virginia State, email 11/10/2014 

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