Chelsey Tucker graduated with a Bachelor of History degree from Metropolitan State University in 2019. She now writes about insurance with her specialty being life insurance and has been quoted on Help Smart Phone and MEL Magazine.

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years. He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Mar 19, 2020

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The lowdown...

  • Some health insurance plans are being canceled due to the provisions of the Affordable Care Act (Obamacare)
  • Many of these plans had hidden gaps in their coverage
  • There are many better plans available to those who want to compare health insurance quotes online

The Affordable Care Act, more commonly known as Obamacare, had several regulations concerning the cancellation of health insurance policies. Insurers were forbidden from canceling health insurance coverage due to pre-existing conditions, for example. These provisions were widely praised after the act was passed. The public opinion was that these regulations would keep Americans from getting their coverage canceled in any circumstances.

However, this is not the case. A small percentage of people actually saw their coverage get canceled due to the Affordable Care Act. These cancellations were seized on by Obama’s political opponents as proof that the Affordable Care Act was a disaster. A closer look, however, reveals a more complicated story.

Don’t panic if your health insurance has been canceled. You can compare quotes online with our free search tool and find a new policy that offers more than just the basics at a price you can afford.

Enter your zip code above to see costs from your state’s top providers now!

Who’s getting their health insurance canceled?


It is important to note that cancellations due to Obamacare do not affect the vast majority of the American public. The roughly 80 percent of people who get their coverage through their jobs or through government programs are not going to get their insurance canceled.

Obviously, the approximately 15 percent of people that don’t have health insurance at all are not getting cancellation notices. The people getting cancellation notices are those that bought health insurance that is now not allowed by the Affordable Care Act.

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How many people are getting their health insurance canceled?

Estimates vary on the number of people who have outdated insurance policies, but most statistics put the number at around 4 percent. If you do the math, this works out to approximately 11 million Americans.

It is important to note that these people are not getting their insurance canceled instantly. Instead, they are getting notices that inform them their policy will be canceled at the end of the year instead of renewing.

When their health insurance policy ends, they will need to compare insurance quotes online and buy a new policy. Of course, they need to check and make sure the policies being offered conform to the Affordable Care Act.

Is it really a bad thing for these policies to get canceled?

Obviously, the initial reaction of most people who get their policies canceled is negative. This is also true of the initial reaction of those who don’t have their policies canceled but merely hear about someone who did.

However, a closer look at the policies disallowed under the Affordable Care Act shows that these cancellations may be for the best.

The Provisions of the Affordable Care Act


The Affordable Care Act introduced many new requirements for health insurance policies. These requirements were aimed at reducing or eliminating gaps in coverage, reducing the number of bankruptcies due to medical bills, and ensuring pre-existing conditions were covered.

Many health insurance policies that people purchased privately did not meet these regulations. Unfortunately, many people who had these policies did not realize that they had these deficiencies until it was too late. Of course, this is one of the reasons that the Affordable Care Act was passed in the first place.

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More Deficiencies In the Policies Canceled by Obamacare

As previously mentioned, health insurance policies previously canceled people for having pre-existing conditions. However, this is not all they did. If the insurer decided not to cancel someone with a pre-existing condition, they often raised that person’s rates significantly. This, too, is now illegal under the Affordable Care Act. However, the deficiencies made illegal under Obamacare extend far beyond pre-existing conditions.

Previously, many plans did not cover hospitalizations, prescription drugs, and maternity care. Now, health insurance must cover these situations.

The Affordable Care Act also puts a limit on out-of-pocket expenses incurred from medical bills in one year at $6350 per person. Policies that do not meet these regulations cannot be renewed.

What does Obama have to say about it?

President Obama said many times that those who like their plan can keep their plan. Some people liked their health insurance plans that were canceled, despite their deficiencies. Obama has received a lot of criticism for the cancellation of plans that people were happy with. This is one of the factors cited by those who wish to repeal and replace Obamacare.

However, many people say that Obama’s remarks were true in spirit, if not true to the letter. Many of the people who liked their health insurance plans were not aware of the many things they didn’t cover.

Health Insurance Cancellations in the Past


Of course, health insurance plans were canceled before Obamacare. Insurers discontinued plans for many reasons. Perhaps a certain plan was unprofitable, and the company shut it down. Many people were also kicked off their health insurance plans if a pre-existing condition was discovered. Less drastic but still detrimental actions were also common, such as changes in benefits or increased in charges. The Affordable Care Act limits these actions.

In the health insurance market of the past, plans were sold with one-year contracts. The insurers were legally bound to follow the stipulations of the plan for those 12 months but could do almost whatever they wanted afterward.

The modern health insurance market features a selection of plans with better benefits and more security, much to the delight of people getting health insurance quotes online lately.

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What to do After You Receive a Cancellation Notice


If you’ve received a cancellation notice, don’t panic. Keep in mind that your insurance is not getting canceled until next year. You have plenty of time to find a new policy. In fact, the notice you received from your insurer probably included a selection of new policies that you can get. However, it may not be the best idea to choose one of these plans before shopping around.

There are many amazing health insurance plans that you can find by simply comparing quotes online. Not only can you compare prices, but you can compare coverage as well. Rest assured that any new plan being offered meets the regulations of the Affordable Care Act.

Find new coverage today by entering your zip code below; we’ll match you with providers who offer the policies you need based on your location, budget, and other needs.