Plan cancellations no surprise

Gene Ramsay, a benefits consultant in Birmingham, Ala., and president of the Birmingham Association of Health Underwriters, says that reports of a large number of people losing coverage could be premature. But it's still cause for concern.

"I think some of those numbers are people jumping the gun," he said. "But, at the end of the day, I agree there will be a lot of people with individual coverage who will be sorely, sorely disappointed in what happens to their premium — and their plan — come Jan. 1. And they don't have a choice. They either have to accept it, or go to the exchanges."

Consumers, as Ramsay points out, are the ones most affected by these reports. Though the administration knew some would lose their plans under PPACA, most were left in the dark.

After all, President Obama vowed repeatedly that, under his signature health care overhaul, those who liked their plans could keep them. 

"One of the most important promises made by President Obama … was that Americans who were satisfied with their health plans could keep them," Sen. Ron Johnson, R-Wis., said in a statement. "That promise has been broken."

Ramsay says the reports about the cancellation notices are still alarming. 

"If an individual is willing to pay the premiums they're paying in their existing coverage, to me, they've already met the requirement of what the government is asking them to — which is to acquire health insurance. So why in the world should I be forced to not only have it…but now I can't keep my plan, and [carriers] are going to make me go to an equivalent plan and charge me for it?"

Last week, Florida Blue announced it was dropping 300,000 customers whose policies the carrier says aren't sufficiently comprehensive under PPACA. Rep. Gov. Rick Scott — a continual critic of PPACA — said at the time that the carrier's actions show not everyone is able to keep their plans as promised.

That followed other similar carrier moves: Kaiser Permanente in California cancelled 160,000 policies, about half of its individual policies in the state; Highmark in Pittsburgh announced it was withdrawing five of its insurance plans that don't comply with the law; Independence Blue Cross cancelled 45 percent of its individual policies in Philadelphia.

Regardless of its consequences, the hype over coverage loss is still more bad news for an administration already struggling with the faulty exchange launch.

PPACA's website woes have resulted in apologies from federal officials and promises the site will be completely operational by mid-November.

The website glitches, Smith said, is more of a problem than the reports of cancellation notices.

"I think people are panicking about the wrong thing," he said. "The website is thoroughly complex, and no one knew about how complex it was until it was too late. [Fixing it] is what we need to focus on."

Ramsay concurs the changed or cancelled policies aren't the end of the world. 

"For people who are frustrated, though, there are individual options out there," he said. "And we in the industry, we can help them find what's best."