Will There be Demand for Copper Plans?

Back in November, a Democratic senator facing a tough re-election introduced legislation that would amend PPACA to allow for “copper” plans – health plans with an actuarial value of 50%. The legislation hasn’t made much progress, but a new analysis of its potential impact, commissioned by the Council for Affordable Health Coverage, has refocused attention on the concept of adding a new low-cost plan. The pros: it would be a more affordable choice for young people, it might keep some employers from dropping coverage, and the lower premium would result in less spending on subsidies by the government. The cons: the individuals most inclined to purchase the low-cost plan might have a hard time handling the high deductibles and copays. Some question whether there’s an appetite for a 50%-value plan, given that only 20% of individuals enrolling through the public exchanges selected the 60%-bronze plan. But given that we’ve seen there’s a market for skinny plans, it’s a safe bet that employers and individual consumers would at least like to consider the option.

Go to full article: modernhealthcare.com

Beth Umland
by Beth Umland

Director of Research, Health, Mercer

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