Insurers Propose New Open Catastrophic Plans

By Christine Kern, contributing writer

A proposed AHIP plan would enhance affordability and accessibility of healthcare.

America’s Health Insurance Plans (AHIP) has announced a series of solutions to enhance the affordability, stability, and accessibility of health care.

These efforts include the introduction of a new lower-premium coverage option, guidelines to ensure continuity of care during transition periods, and greater transparency related to benefits and coverage options, according to AccessNoGa.com. These changes to President Barack Obama's healthcare law would provide financial assistance for people buying bare-bones coverage, enticing the healthy and the young, the industry says, and holding down premiums.

AHIP president and CEO Karen Ignagni explains, "We know that affordability, stability, and accessibility are top of mind for consumers when it comes to their healthcare. These solutions demonstrate health plans' ongoing efforts to advance these key priorities, and we intend to work with all stakeholders to provide consumers with greater peace of mind in the new marketplace.”

Under current law, so-called catastrophic plans are ineligible for the law's subsidies, leading only 2 percent of the eight million consumers who signed up this year to select one of them. Subsidies reduce the cost of monthly premiums, so if catastrophic plans were eligible for subsidies, more consumers could be covered.

The press release states that these solutions are crucial to improving the consumer experience and promoting patient-centered care for millions of Americans. These efforts focus on:

• Enhancing affordability by giving consumers - especially younger individuals – a new lower-premium plan option that would bring more people into the marketplace.
• Enhancing stability by ensuring continuity of care protections to provide important support during times of transitions in coverage.
• Enhancing accessibility through greater transparency, so that patients are getting the information they need to choose the right coverage, as well as the right care.

"What is crucial for public policy leaders is to balance access and affordability," said Karen Ignagni, head of the trade group. "Unless people feel that coverage is affordable, they won't participate in the system."

The future of this latest proposal is unclear, as opposition could come from Republicans determined to repeal Obamacare or from consumer groups, who traditionally oppose catastrophic plans. This new proposal would create a new catastrophic plan open to people of any age and eligible for tax credits provided by the law. It would have an annual limit on out-of-pocket costs and preventive care would be covered at no charge to the patient.

To learn more about these solutions, click here.