Policy cancellation notices latest debate focus in fight over health care reform
Opponents of the Affordable Care Act say the estimated 14 million individual policy cancellations being sent by insurers are evidence that health care reform isn't working.
Medicare chief Marilyn Tavenner was hit with complaints about the cancellations at a hearing today by Republicans who angrily waved letters from constituents.
Tavenner said insurers, not the administration, are to blame for the notices. But she said consumers will be able to shop on exchanges for polices that are better, and in some cases less expensive. Democrat Sander Levin of Michigan said one of his constituents saved more than $700.
It was expected that some insurers would cancel policies because it is easier to issue cancellations and issue new policies than to make modifications. The law requires that all new policies provide more services and better financial protection against catastrophic illnesses. Some states directed insurers to issue cancellations. Large employer plans that cover most workers and their families are unlikely to be affected.
Critics say President Barack Obama should not have said during campaigning that Americans could keep their plans if they like them.
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