(Memphis) Thousands of people in Tennessee are being forced to buy new insurance as the affordable care act goes into effect.
A TennCare sponsored program called CoverTN is getting the axe because it doesn’t meet qualifications under Obamacare.
About 16,000 people in Tennessee have this insurance.
CoverTn is mostly used by small businesses but now they’re going to have to change things up.
Under CoverTN the employer, employee and state split insurance premiums three ways as an option for small business owners or self-employed people to afford insurance.
But CoverTN has a yearly cap on benefits of $25,000, and under the new Affordable Care Act caps are not allowed.
The state is sending out a letter to 16,000 CoverTN recipients telling them to apply for new insurance under the affordable care act in healthcare exchange, or apply for whatever plan their business owner is switching to.
Sara Tasksly is with the insurance program says enrollment for CoverTN coverage has been closed since 2009, but for those thousands still left on the program you should find new insurance by December 15 to avoid a gap in coverage when CoverTN goes away at the end of the year.
“We are encouraging through the notifications and letters that have been sent out for people to go to the health insurance market place to search for alternative healthcare coverage,” said Tasksly.
CoverTN also doesn’t meet all of the required health coverage areas under the affordable care act.
Required areas include prevention, mental health, chronic disease management and pediatric services among others.
If you now need insurance, you can compare all of your options at healthcare.gov or call 1-800-318-2596.