Affordable Care Act insurance cancellations

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Reporter: Mychaela Bruner
Photographer: Jason Thomason

PADUCAH, Ky—Mass confusion and worry tonight as people across the country receive discontinuation notices from their insurance companies.  A public information officer for Kentucky's Department of Insurance said take a deep breath and read the letter thoroughly.

The reason you are receiving a letter is because your insurance has been discontinued because it did not meet the requirements of the Affordable Care Act.  The letter indicates you are actually being transitioned into a new plan.  The PIO said, in most cases it is very similar to what you had before, but it complies with the Affordable Care Act.

It is a confusing time for Rick and Melinda Reigle.

"I'm a very healthy person, I've had the same company, I don't take any medications, I'm not of child bearing years, but my insurance rates are going up... I feel like I'm being penalized," said Melinda.

They turned to their insurance agent who told them to contact their accountant. CPA Dean Owen said it can be stressful, receiving the letter and not knowing exactly what to do.

"Right now we are trying to help clients look at buying their insurance early before January 1 to capture some of the low premiums that are available on the marketplace today because we know January 1 most of them will go up significantly," said Owen.

Department of Insurance PIO Ronda Sloan wants people to know if they receive a letter, they have options.

"I think people are being told, you're having your coverage canceled or terminated, that's actually not the case, no one is losing their coverage, they are just being transitioned into another plan," said Sloan.

Sloan said it is an opportunity to pick a plan that is right for you.  Sloan said if you do not like the plan, you do not have to accept it.  You can call your insurance company and ask what your options are.

The health care law requires people have health insurance by March 31 of 2014.

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