Last week, with only four days left for those who were
uninsured to enroll in the new healthcare marketplace, lawmakers were getting
closer to creating a whole new level of healthcare options that would meet less
than what was minimally acceptable by the Affordable Care Acts original
intention.
‘Copper Plans,’ would be a whole new option for insurance
seekers who wouldn’t mind pay more out-of-pocket costs for a smaller monthly
premium. This type of insurance plan was originally deemed illegal by the
Affordable Care Act because they lacked the minimum coverage required by the
law, and millions of individuals lost their coverage because insurance
companies began dropping them.
The reason why these ‘Copper Plans’ will be cheaper is the
fact that they will hold a much smaller actuarial value than their Platinum,
Gold and Silver plan counterparts. That is to say, that the healthcare consumer
is expected to pay a much higher amount of their expected healthcare costs over
the course of the coverage.
The Walls Street Journal had this to say; “Now, some
insurers and a pair of Senate Democrats are trying to change the law
permanently so that individuals and small businesses can buy so-called copper
plans. The plans likely would have lower premiums, but purchasers would pay
more of their ordinary health costs upfront. Greater coverage would kick in for
serious, unforeseen health episodes that would require, for example, a hospital
stay.”
Another reason why Senate Democrats might be feeling the
pressure to create such a plan, is the fact that one of the several promises of
the Affordable Care Act was that this legislation would reduce premiums for the
majority of Americans. However, now that less risky healthcare consumers are
subsidizing more risky healthcare consumers, and the fact that these less risky
consumers are only allowed to have reduced plans by a 3:1 ratio compared to the
most risky consumer, the overall cost of premiums has slightly increased. These
smaller actuarial plans will allow consumers to take on more of their own
healthcare risks, while simultaneously reducing their monthly premiums.
SHARE YOUR THOUGHTS:
Would you be interested in a Copper Plan? Do you think it a good idea for the consumer? Have you enrolled in an ACA healthcare plan? Did your premiums increase? Do you think healthcare management and health policy is being handled properly?
Sources:
http://si.wsj.net/public/resources/images/OG-AA801_HCProm_D_20140205132038.jpg
