11/21/13 Indiana Department of Insurance (â€śIDOIâ€ť) Commissioner Stephen W. Robertson announced Thursday that the State of Indiana will not order insurance companies operating in Indiana to reinstate cancelled policies, as recently suggested by President Obama.Â
â€śPresident Obama has asked that Indiana compel insurance companies who choose to do business in our state to reinstate carefully phased-out policies at a momentâ€™s notice,â€ť said Robertson.Â â€śSuch action would seriously destabilize Indianaâ€™s insurance market and create logistical chaos, fueling even more uncertainty for Hoosiers.Â Furthermore, we do not believe that IDOI has the authority under Indiana law to fulfill the Presidentâ€™s untimely request.â€ť
The Affordable Care Act provided an â€śearly renewal optionâ€ť that effectively enables existing plans to delay new federal mandates for about another year so that individuals who are currently enrolled in those plans could transition more smoothly and budget accordingly for extra expenses.
Insurers that chose to offer an early renewal option to their existing customers worked with IDOI earlier this year in a timely and responsible manner to price their insurance products appropriately to comply with Indianaâ€™s financial regulatory standards and general market stabilization functions.Â
IDOI planned and worked with insurance companies for months to get the proper rates and policy contract language approved and transferred to the federal government by its July 31, 2013 deadline so the health insurance plans would be available effective January 1, 2014.Â
Not every insurance carrier offered early renewal as an option to their existing customers, and some insurance carriers that sold existing products will no longer sell in Indianaâ€™s insurance market in 2014.Â