Extending Old Health Plans May Have Little Impact
The Obama administration extending health insurance policies canceled for not meeting minimum standards for two years should have little impact, an expert says.
Non-compliant plans might offer less comprehensive coverage, put people at risk for unaffordable medical bills, or charge premiums based on health status, Collins wrote in a
Earlier this month, the administration extended the policy, allowing renewals of existing policies in the individual and small-group insurance markets through
"While the extension carries some risks for the nation's newly regulated insurance markets, its ultimate effects are likely to be small," Collins wrote in the blog.
"While only the nation's insurers know how many people have renewed health plans that are not compliant with the Affordable Care Act, the number is likely small. Research by
In addition, most people who are eligible for premium and cost-sharing subsidies would likely switch to plans that meet the ACA standards because they'll be paying the same or less out-of-pocket for better coverage, Collins said.
"If the people who keep their sub-standard health insurance plans are healthier than average -- which is likely since they were all underwritten based on health for pre-2014 coverage -- their removal from the pool of people with policies that meet the law's benefit standards will lower that pool's average health status, and could lead to higher premiums next year," Collins said.
"Some actuaries of major health plans who participated in a recent meeting sponsored by
The administration's policy goes against
"While some Americans will find comfort in the option to keep their sub-standard policies, the Affordable Care Act's biggest benefits -- including lower out-of-pocket costs and subsidized coverage -- will go to those millions of eligible people who are signing up for the law's new protections," Collins said.
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Wordcount: | 487 |
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