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HEALTH CARE REFORM:
Under Health Care Act, Millions Eligible for Free Policies
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Under Health Care Act, Millions Eligible for Free Policies
By Reed Abelson and Katie Thomas
Published: November 3, 2013
New York Times
http://www.nytimes.com/2013/11/04/business/
under-health-care-act-millions-eligible-for-free-policies.html
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A shorter URL for the above link:
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http://tinyurl.com/nxq3acq
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Millions of people could qualify for federal subsidies that will pay the
entire monthly cost of some health care plans being offered in the online
marketplaces set up under President Obama's health care law, a surprising
figure that has not garnered much attention, in part because the
zero-premium plans come with serious trade-offs.
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Three independent estimates by Wall Street analysts and a consulting firm
say up to seven million people could qualify for the plans, but federal
officials and insurers are reluctant to push them too hard because they
are concerned about encouraging people to sign up for something that might
ultimately not fit their needs.
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The bulk of these plans are so-called bronze policies, the least expensive
available. They require people to pay the most in out-of-pocket costs, for
doctor visits and other benefits like hospital stays.
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Supporters of the Affordable Care Act say that the availability of
free-premium plans - as well as inexpensive policies that cover more -
shows that it is achieving its goal of making health insurance widely
available. A large number of those who qualify have incomes that fall just
above the threshold for Medicaid, the government program for the poor,
according to an analysis by the consulting firm McKinsey and Company.
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The latest analysis was conducted by McKinsey's Center for U.S. Health
System Reform, whose independent research has been cited by the federal
government and others.
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"The whole point of the law was not only to cover the uninsured, but so
people didn't have to make choices between food or drugs, or going to the
doctor or dentist," said Karen Davis, a health policy expert at the Johns
Hopkins Bloomberg School of Public Health. "It's what it is designed to
do."
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Many insurers tried to price their least expensive plans so they would
become free or nearly free with the addition of subsidies that are set
based on a person's income and the cost of a midlevel, or silver, plan.
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Independence Blue Cross in Philadelphia has four plans that are free to
some customers. But the company, along with other insurers, has been
careful not to publicize its free coverage for fear of alienating
customers who will need to pay more.
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The complete article may be read at the URL above.
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