People with grandfathered individual plans from Humana will need to buy new policies in 2016.
Humana is ending its grandfathered individual health insurance plans in Tennessee beginning in March.
The insurance company opted to end the plans in the state, as well as other states, “to maintain sustainable and affordable health plans for our members,” Humana spokesman Jeff Blunt said in a prepared statement to The Tennessean. There are fewer than 3,500 people in the state who have grandfathered individual plans, he said.
The cancellations will take effect on the date a member’s plan renews. People with grandfathered individual plans will need to buy a new policy either on the health insurance exchange, where tax credits are available, or off-exchange, where subsidies are not available to reduce monthly premiums.
“Humana chose to no longer maintain grandfathered individual health plans in several states, including Tennessee, in order to retain the overall affordability of our individual health plan offerings,” Blunt said.
Matthew Taber bought a Humana plan in 2008 and learned of the cancellation this week from his insurance broker, Marsha Jaffa of Robins Insurance Agency.
“I liked that plan, but as they say, ‘All good things must come to an end,’ ” Taber said.
Keeping grandfathered plans — those in place before March 23, 2010 — in place under the Affordable Care Act is up to individual insurers. BlueCross BlueShield of Tennessee and other insurance companies around the nation have begun to end grandfathered plans, which do not have to comply with all ACA requirements, such as covering preventative visits.
Insurers have to notify the Tennessee Department of Commerce and Insurance of cancellation plans. Humana, as of Dec. 23, had not let the agency know about its plans, department spokesman Kevin Walters said in a prepared statement.
Notices typically include contact information where policyholders can get questions answered.
“We are disappointed that we were not made aware of this sooner, and we have already reached out to the company for confirmation and additional information,” Walters said.
News of the cancellation is mostly traveling by word of mouth.
Jaffa said she has spoken with four clients this week who were unaware of the cancellation and learned it from her
Eric Jans, an independent broker in Nashville, said he’s heard from clients who are shopping for new plans because they learned their Humana plan was ending.
Taber said he would have liked to know about the cancellation last week, before the deadline for a 2016 plan starting on Jan. 1.
Open enrollment on the federally run exchange ends Jan. 31, but those impacted throughout the year by the Humana cancellation will be able to get insurance.
Cancellation is a “qualifying event,” an occurrence such as a change in marital or employment status that impacts insurance eligibility, so people will be able to buy a plan outside of the open enrollment period, Jans said. Someone who had a plan ending, for example, on March 1 could shop today for a plan with a March start date or could wait until the end of February to enroll, Jans said.
“If I wanted to go apply for a plan right now that starts Jan. 1, I can’t,” Taber said. “That’s what I’m ticked off about.”
BlueCross BlueShield of Tennessee is ending its grandfathered plans for about 24,000 people on about 90 plans on Dec. 31. It sent letters out in September.
Reach Holly Fletcher at 615-259-8287 or on Twitter @hollyfletcher.
Have a grandfathered individual health insurance plan from Humana?
Call 1-800-833-6917 for questions about individual and family plans.
Health insurance companies selling plans on the 2016 exchange
- BlueCross BlueShield of Tennessee is selling statewide. http://www.bcbst.com/about-health-insurance/how-to-enroll/index.page
- Cigna is selling in Memphis, Nashville and Tri-Cities. http://www.cigna.com/individuals-families/tennessee.page
- Humana is selling in Knoxville, Memphis and Nashville. https://www.humana.com/individual-and-family/products-and-services/medical-plans/
- UnitedHealthcare is selling statewide. http://www.uhc.com/
Need help with enrollment?
- See what’s available at www.healthcare.gov.
- Contact Get Covered Tennessee online, http://www.getcoveredtenn.org/, or by phone to schedule an appointment with someone in your area. There will be free, in-person assistance available in all 95 counties.
- To call for an appointment or to find out where assistance is available: 1-844-644-5443.
- Contact an independent insurance broker.
Date: December 23, 2015