What Can Health Insurance Companies Deny Coverage For? 
Effective 01 January 2014 , Health Insurance Companies will only be able to deny coverage for non payment of premium ! The Affordable Care Act also known as ObamaCare has made drastic changes to the way our industry operates and underwrites risk . We will no longer be able to pick and choose clients ; if clients can not afford insurance and qualify for assistance , the taxpayers will foot the bill , if clients want to take their Federal tax deduction up front monthly , it will be provided as a discount to their monthly premium . In addition , there are 10 required ` essential health benefits ' that must be included in all health plans thereby driving up premium whether or not one needs the coverage . Clients have the choice of purchasing a plan ` On Exchange ' or ` Off Exchange ' -LRB- the traditional way -RRB- . Please notethat this is not a National Health system as witnessed in operation in many other countries . This is simply a Nationally recognized andgoverned exchange whereby insurance carriers can provide an approved plan on an exchange where clients can select the plan . The plan codes are differenton exchange than plans off exchange . It remains to be seen if clients on exchange will be treated the same as clients off the exchange . In the month of November , 39 % of those applying to the exchange in California were on some type of assistance -LRB- MediCal -RRB- . If the exchange continues to support only those on assistance and olderAmericans with health issues , it would be conceivable that premium rates would need to sharply rise to avoid bankrupting the exchange . The vast majority of those contacting their insurance companies to make changes have expressed dismay with the new system of managing the health insuranceindustry . The truth remains to be judged by history ! 