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Michigan officials say insurance companies can continue to offer health plans canceled by Obamacare

Steve Carmody/Michigan Radio
(file photo)

Michiganders at risk of losing their health insurance because of Obamacare may be getting a reprieve.

It’s estimated that more than 200,000 policies in Michigan could be at risk of being canceled because the policies don’t meet the minimum standards of the Affordable Care Act.

After a public outcry, President Obama asked the states and insurance companies to keep those policies in effect for another year. 

Ann Flood is the director of the Department of Insurance and Financial Services.  Today, she announced the state of Michigan will allow insurance companies to reinstate canceled plans.

“We weighed all the possible disruptions to the market against the ultimate benefits to our consumers,”  Flood said after the decision was announced.

Flood admits it may be difficult for insurance companies to reinstate health care plans they've canceled.  And she’s not sure how many will do it.    Blue Cross/Blue Shield has reportedly said it won't offer extensions for most of the plans it offers that it planned to cancel. 

“We are ready and willing and able to work with any of the carriers who make that decision to allow the reinstatement of canceled plans,” says Flood, “and we expect to hear from the carriers that are interested in doing that in the next couple of weeks.”

Flood says the one-year extensions will offer more choice to consumers who buy their own insurance and a reprieve from policy cancelations planned on Jan. 1.

Steve Carmody has been a reporter for Michigan Public since 2005. Steve previously worked at public radio and television stations in Florida, Oklahoma and Kentucky, and also has extensive experience in commercial broadcasting.
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