Are Tennessee Health Insurance Plans Exempt From Health Care Reform?

Tennessee health insurance companies were granted a temporary waiver in February 2011 that allows health insurance companies to keep doing business as usual even though some health insurance plans are not in compliance with the new health care reform law - The Patient Protection and Affordable Care Act.

Tennessee insurance plans will not be required to include the same level of benefits that will be mandated in all but three other states. However, these waivers are only good for one year. All states will have to work toward compliance and more of the Affordable Care Act will be in full force by 2014.

Along with Florida, New Jersey and Ohio, Tennessee health insurance will not have to provide a minimum of $750,000 for care from doctors and hospitals or prescription drugs. That means your health plan could still have much lower annual limits on benefits and coverage.

How Many Tennessee Insurance Plans Are Exempt?

The director of the federal Center for Consumer Information and Insurance Oversight said the waiver applied to more than 900 health insurance plans held by 2.4 million people.

How did this happen? Complying with the new health care reform law would have resulted in higher premiums or less access to coverage for some Tennessee residents. A temporary waiver was issued to protect their access to current coverage levels. Sadly, limited health care benefit plans are the only option offered to some workers in Tennessee and without this option workers could have been left with no coverage at all. Hundreds of thousands could have seen their benefits cut or could have lost coverage completely.

What's The Future For Health Insurance In Tennessee?

While plans with limited benefits are still seen as inadequate, the waivers are part of the concessions to transition to more comprehensive changes that are scheduled for 2014. At that time, the small number of Tennessee health insurance plans that limit yearly benefits will no longer be allowed.

In 2014, Tennessee, like all states, will be required to provide an "insurance exchange" that's available to individuals and businesses that have up to 100 employees working more than 30 hours a week. Such state exchanges are expected to help 24 million people with health insurance coverage. These exchanges will offer five different benefit levels to increase selection.

Will Tennessee Health Insurance Options Be More Affordable In 2014?

Employers will be required to provide "free choice vouchers" to certain employees. If employees are required to contribute from 8 to 9.8 percent of their taxable annual income for minimum coverage, they will be eligible for a voucher.

In addition, in households where the income is below 400 percent of the Federal Poverty Level, vouchers will help fund minimum Tennessee health insurance coverage. Employees who do not join an employer-offered health plan will also have access to these vouchers.

Vouchers are not the only help available, though. The Premium Assistance Tax Credit can help those in households where the income is from 100 percent to 400 percent of the Federal Poverty Level pay for health plans offered via Tennessee's exchange.

Tennessee has already begun planning for a Tennessee health insurance exchange and has received federal funding for this.