BCBS of Alabama won't reinstate canceled health plans - WSFA.com: News Weather and Sports for Montgomery, AL.

BCBS of Alabama won't reinstate canceled health plans

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MONTGOMERY, AL (WSFA) -

Blue Cross and Blue Shield of Alabama, the state's largest health insurance company, has announced it won't reinstate health plans that don't comply with the requirements of the Affordable Care Act.

The president announced last week that insurers can extend individual coverage plans for at least another year that would otherwise be canceled into 2014.

The temporary reinstatement of polices that aren't compliant with the Affordable Care Act would create dual classes of policyholders and destabilize the state's insurance market and the risk pools associated with these health plans, according to a news release from Blue Cross and Blue Shield of Alabama.

Blue Cross and Blue Shield of Alabama said the one-year continuation of the policies would mean higher healthcare costs for all of its customers and significant legal and financial risks.

Blue Cross has 87,000 policyholders in Alabama with plans that didn't comply with the federal law and are being moved to new policies.

Rep. Terri Sewell released the following statement after the BCBS announcement:

"In light of Blue Cross' recent business decision, I hope that those individuals that had plans with insufficient coverage will now evaluate and choose better plans within the marketplace through the Affordable Care Act."

Rep. Martha Roby released this statement:

"Rep. Roby is aware of the decision. Real people are being hurt here, and it's going to take more than an ‘administrative tweak' to solve this problem. We need to start over and build a patient-centered health care system that isn't run by the government."

Copyright 2013 WSFA 12 News. All rights reserved.

AP contributed to this story.

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