Gov't Offers Stopgap Health Insurance Option

By: Associated Press Email
By: Associated Press Email

WASHINGTON (AP) - The Obama administration is trying avoid making more bad news over the rollout of the president's health care law.

Trying to head off a break in coverage for people whose individual plans have been canceled, Health and Human Services Secretary Kathleen Sebelius is opening up a special coverage option created under the law for young adults.

In a letter to senators released Thursday night, Sebelius says people whose plans have been canceled will, regardless of their age, be able to buy a bare-bones catastrophic plan intended mainly for people under 30.

The insurance industry immediately criticized the special exemption, saying it could create market instability and confuse consumers.

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