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HHS approves catastrophic plan option for people with plan cancellations

December 20, 2013

The Department of Health and Human Services late yesterday announced that individuals who had their insurance plans cancelled because they did not meet the requirements of the Patient Protection and Affordable Care Act will be able to buy catastrophic plans and will not face penalties if they do not purchase insurance in 2014. “I agree with you that these consumers should qualify for this hardship exemption, and I can assure you that the exemption will be available to them,” HHS Secretary Kathleen Sebelius yesterday wrote in a letter to Sen. Mark Warner (D-VA) and five other senators. “As a result, in addition to their existing options these individuals will also be able to buy a catastrophic plan to smooth their transition to coverage through the Marketplace.”