Michigan to Allow Health Insurers to Reinstate Canceled Plans

If your health insurance policy was cancelled in anticipation of the start of the Affordable Care Act, you may soon be able to have it reinstated.

Today, the Michigan Department of Insurance and Financial Services (DIFS) said that after careful review, Michigan is allowing health insurers to reinstate cancelled policies.

“The announcement of the federal policy change this close to January 1 came as a surprise,” said Ann Flood, Director of DIFS. “We considered the difficulties that this change will create for insurers, but the decision came down to the fact that consumers in Michigan deserve to have options, particularly given the difficulty they’ve had accessing the federal Marketplace.”

Governor Rick Snyder agreed with Director Flood’s decision.

“A healthier Michigan is an important part of our state’s continued comeback, but unfortunately Michiganders have seen their health insurance plans canceled under the Affordable Care Act after they were promised they wouldn’t lose them,” Snyder said. “Now, this policy change opens the door for those canceled policies to be continued. In Michigan, we want to be sure that consumers have the best options available.”

The decision allows insurers the option to reinstate policies that were to be discontinued beginning on January 1, 2014, due to non-compliance with provisions in ACA, and follows the announcement that the U.S. Department of Health and Human Services will not enforce certain ACA provisions in 2014 for plans that were in effect on Oct. 1, 2013.

If a consumer’s plan is reinstated, their insurer is required to send a notice that informs the consumer of the ACA reforms that are not included in their reinstated coverage, their right to enroll in a plan through the Marketplace with the potential for financial assistance, and all available coverage options.

Individuals can learn more at www.michigan.gov/difs.
Businesses and nonprofits looking to learn more about the ACA can contact Fraser Trebilcock at 517.482.5800.