Congress has cut federal funding for public media — a $3.4 million loss for LAist. We count on readers like you to protect our nonprofit newsroom. Become a monthly member and sustain local journalism.
Obamacare: White House policy shift on cancelled plans will apply in California
Covered California Executive Director Peter Lee.
(
Max Whittaker/Getty Images
)
The head of the state-run health insurance marketplace said Saturday that President Obama’s policy shift regarding cancelled individual plans will apply in California.
On Thursday the administration said people whose plans are cancelled can apply for a temporary hardship exemption that would let them buy catastrophic coverage that conforms to the Affordable Care Act. Covered California Executive Director Peter Lee indicated that his agency doesn’t have a choice about adopting the new approach.
"There’s no position to take" on the matter, said Lee. "That’s a new definition of what the hardship criteria is, [so] we’ll administer that in California."
Support for LAist comes from
Speaking at an ACA enrollment event at AltaMed Health Insurance Resource Center in east L.A., Lee asserted that "the vast majority" of those newly eligible for catastrophic plans "don't necessarily want" such a plan because they are searching for "good value," and catastrophic plans generally are not a good value compared with the plans offered through Covered California.
Related Material: FAQ on navigating Covered California
The ACA requires insurers to cancel individual plans that don't provide ten essential health benefits. Previously, people with cancelled plans were required to replace them with a more robust plan (which would probably carry a higher premium than a catastrophic policy).
Besides giving people with a temporary hardship exemption the option of buying a catastrophic plan, the new White House rules give them the option of not buying insurance at all this next year (and avoiding the federal tax penalty) if they believe that other plans offered in Covered California are unaffordable.
Related material: The full list of exemptions from the tax penalty under the Affordable Care Act.
Correction: This story was updated on Dec. 22, 2013 to correct the statement regarding the type of catastrophic plans people with cancelled policies can buy. A previous version said those plans did not have to be ACA-compliant. The update also notes that people with cancelled plans who obtain a temporary hardship exemption can opt out of buying insurance and avoid the federal tax penalty. The sentence regarding what the ACA requires insurers to cover was amended to say "ten essential health benefits," rather than "preventive services." Some, but not all, of the ten benefits are preventive services.
As Editor-in-Chief of our newsroom, I’m extremely proud of the work our top-notch journalists are doing here at LAist. We’re doing more hard-hitting watchdog journalism than ever before — powerful reporting on the economy, elections, climate and the homelessness crisis that is making a difference in your lives. At the same time, it’s never been more difficult to maintain a paywall-free, independent news source that informs, inspires, and engages everyone.
Simply put, we cannot do this essential work without your help. Federal funding for public media has been clawed back by Congress and that means LAist has lost $3.4 million in federal funding over the next two years. So we’re asking for your help. LAist has been there for you and we’re asking you to be here for us.
We rely on donations from readers like you to stay independent, which keeps our nonprofit newsroom strong and accountable to you.
No matter where you stand on the political spectrum, press freedom is at the core of keeping our nation free and fair. And as the landscape of free press changes, LAist will remain a voice you know and trust, but the amount of reader support we receive will help determine how strong of a newsroom we are going forward to cover the important news from our community.
Please take action today to support your trusted source for local news with a donation that makes sense for your budget.
Thank you for your generous support and believing in independent news.
Chip in now to fund your local journalism
(
LAist
)
Trending on LAist
-
With less to prove than LA, the city is becoming a center of impressive culinary creativity. -
Nearly 470 sections of guardrailing were stolen in the last fiscal year in L.A. and Ventura counties.
-
Monarch butterflies are on a path to extinction, but there is a way to support them — and maybe see them in your own yard — by planting milkweed.
-
With California voters facing a decision on redistricting this November, Surf City is poised to join the brewing battle over Congressional voting districts.
-
The drug dealer, the last of five defendants to plead guilty to federal charges linked to the 'Friends' actor’s death, will face a maximum sentence of 65 years in prison.
-
The weather’s been a little different lately, with humidity, isolated rain and wind gusts throughout much of Southern California. What’s causing the late-summer bout of gray?
Best of LAist