Individual health plans phased out, make sure it’s for right reasons

As the rollout of the Affordable Care Act continues, many people with individual health insurance are receiving notices that their plans are being phased out.

They’re then given a new option for a more comprehensive plan that meets the health care law minimum guidelines.

But how can you be sure your plan is being dropped for the right reasons?

There are two reasons individual health plans are being eliminated.


The first is if it’s a plan that does not meet the Affordable Care Act guidelines, which requires all plans to cover things like prescriptions, maternity care and mental health coverage.

The second is what’s known as the grandfather clause, which allows you to keep your plan as long as no changes have been made since 2010.    

If changes have been made, insurance companies are required to drop those plans, which has some upset because they’re being forced to pick out a new plan.

“They’re upset because to get a plan even at the very minimum level, the Affordable Care Act requires all these different coverages at even a minimum level, which of course is going to cost more money than a very cheap, very poor plan,” said Johns, Flaherty & Collins attorney Cheryl Gill.

Your insurer should give you the reasons why your plan is being dropped.

If you’re not given a good explanation, there are some steps you can take to make sure you’re being treated fairly.

“If there’s no explanation, it just says their insurance is canceled, I’d say call but if you call a bureaucracy your call gets lost so I would write a letter and I would copy the insurance commissioner,” said Gill.

If you would like to contact the State of Wisconsin Office of the Commissioner of Insurance, visit

If your health plan is phased out, your insurer is required to give you 90 days notice.

The insurer is also required to give you another health plan option.