Survey: Reports of ACA Coverage Cancellations Likely Overstated

Media reports that potentially millions of U.S. residents would have their health coverage canceled because it did not meet the Affordable Care Act's minimum standards likely were overstated, according to a according to a survey released Thursday by the Urban Institute, The Hill reports (Ferris, The Hill, 3/12).

Background

In late 2013, many consumers were notified by their insurers that their current insurance policies would be discontinued because they did not meet minimum coverage requirements under the ACA (California Healthline, 11/11/13).

According to The Hill, a number of news outlets -- including the Associated Press -- reported that "millions of Americans who buy their own health insurance" were informed that they would have to find new coverage (The Hill, 3/12).

In response, the Obama administration created an administrative fix that allowed U.S. residents who received policy cancellation letters to keep those policies if their state regulators and insurers decided to continue offering such plans (California Healthline, 11/21/13). According to The Hill, the administrative fix allowed many plans exemptions until 2017.

Survey Findings

The survey found that the number of U.S. residents who received notifications that their plans would be canceled might have been overstated. According to the survey, 8% of U.S. residents received any form of cancellation notice from their insurers in 2014. Previous estimates had indicated that nearly 20% of people received such notices in 2013.

Further, the survey found that around 500,000 U.S. residents with employer-sponsored coverage, or about 0.3% of individuals with such plans, ultimately had their coverage canceled in 2014. In addition, about 400,000 U.S. residents who purchased coverage through the individual market, or about 2.2% of individuals with such plans, had their coverage canceled last year (The Hill, 3/12).