An insurer in Alabama said Wednesday it will not reinstate health plans that do not comply with the health care law’s standards, despite President Obama recent bid to let Americans hold onto such plans for one year.
Blue Cross and Blue Shield of Alabama said it had worked for three years to develop “comprehensive, reliable” coverage in line with the Affordable Care Act, so it’s not about to backtrack.
“The temporary reinstatement of policies that are non-ACA compliant would create dual classes of policyholders and destabilize the state’s insurance market and the risk pools associated with these health plans,” the insurer said in a written statement posted by Huntsville, Ala., TV station WAFF. “The ultimate impact would be higher healthcare costs for all of our customers, now and in the near future. We have not reached this conclusion easily and have been in continuous consultation with the Alabama Department of Insurance in evaluating all options.”
Mr. Obama, under fire from Senate Democrats and others for his flawed promise that Americans could keep their existing health plans under Obamacare no matter what, said last week that state insurance commissioners and insurers should let people renew their plans for one year, while health markets tied to the health care law improve and gain enrollees.
The announcement created a mixed bag of responses, with some states saying they had devoted too much time and effort to Mr. Obama’s own law to go along with this last-minute plan.
Officials in other states, notably Republican-led ones, said they will carry out Mr. Obama’s fix, so long as individual insurers allow it.