LANSING – Insurers and the Department of Financial and Insurance Services were still working Thursday to determine the effect of President Barack Obama’s executive order allowing those with current health policies to retain them for at least another year.

The executive order, issued after a backlash over a spate of policy cancelation notices, would allow insurers to continue policies that do not comply with the federal Patient Protection and Affordable Care Act, but the company would have to notify insureds that the policy does not comply, and how, and that they have the option to purchase complying coverage through health insurance exchanges.

The Obama administration took heat late last month when a number of insurers issued cancelation notices for policies that would not, as of January 1, comply with the new federal law despite assurances from Obama that the law would not mean people losing their current coverage if they wanted to keep it.

The announcement left those charged with implementing the law trying to determine what the change would mean.

“The Department of Insurance and Financial Services is conducting a thorough review of the policy change announced today by President Obama,” spokesperson Caleb Buhs said in an email. “An assessment of the impact this change will have on Michigan residents and businesses must be completed before any determinations can be made or conclusions drawn. In its continuing efforts to educate Michigan consumers about the Affordable Care Act, DIFS will provide information to the public as it becomes available.”

Blue Cross Blue Shield of Michigan, the state’s largest health insurer, was also working to determine what the executive order will mean for it and its customers.

“Blue Cross Blue Shield of Michigan monitored today’s remarks by President Obama, but we will need to review and understand the substantive changes he is proposing in the ACA regulations before we are able to inform our customers of the impact of those changes on their coverage,” Andy Hetzel, vice president of corporate communications, said in a statement. “Our phone lines are lighting up today, but unfortunately we cannot fully inform our customers until we review the new regulations.”

Opponents of the law said the delay was a step, but not enough.

U.S. Rep. Fred Upton (R-St. Joseph) said Obama should support a measure before the U.S. House, expected to see a vote Friday, that would allow all current policies to remain in force indefinitely.

“Our main priority should be helping the American people. Today’s abrupt pivot comes after the White House has spent the last week attacking our thoughtful approach to begin to give peace of mind to those folks worried about losing their affordable health care,” Upton said.

The administration has opposed the bill because it would allow insurers to continue selling those policies, not limit them to those already holding them.

“What we all really need is a significant and comprehensive overhaul of the entire plan, not merely a one-year delay in one aspect of the system,” Jennifer Kluge, CEO of the Michigan Business and Professional Association, said in a statement.

Kluge said the group supports the delay but is still concerned over premium increases the law appears to be driving in both the individual and group insurance markets.

She said the change would add complexity to what is already a “very complex and broken health care reform model.”

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