The law includes a complicated "grandfathering" system to try to make good on Obama's pledge. It shields plans from the law's requirements provided the plans themselves change very little. Insurers say it has proven impractical. The cancellation notices are now reaching policyholders.
Tavenner blamed insurance companies for cancelling the policies and said most people who lose coverage will be able to find better replacement plans in the health insurance exchanges, in some cases for less money. Change is a constant in the individual insurance market, she added, saying that about half of plans "churn" over in any given year.