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Consumer Group Says Obamacare Cancellations Blown Out Of Proportion

The news has been full of stories lately about people who will lose their individual health coverage due to Obamacare. The consumer group Families USA believes the issue has been blown out of proportion.

Consumer Group Says Obamacare Cancellations Blown Out Of Proportion
Contrary to popular belief, the vast majority of individual policyholders nationwide won't be left out in the cold due to Obamacare, says consumer group.

An estimated 1 million Californians have received a cancellation notice because their individual health plan doesn’t meet new coverage standards.

Covered California, the state's online health exchange, has decided not to extend canceled health plans.


Families USA calculates 68 percent of people with those plans are eligible for subsidized coverage under Obamacare.

The group's executive director, Ron Pollack, admits that getting a termination notice can be frightening. But he said nationwide, only a small portion of the 15 million individual policyholders will be left out in the cold.

“Less than 1 percent are at risk of losing their current plan, due to the Affordable Care Act, and not becoming income eligible for financial help,” Pollack said.

Thanks to Obamacare, up to 3 million Californians will be newly eligible for Medi-Cal, which does not charge a premium.