Early Filings for Obamacare "Bronze Plans" Signal Higher Out-of-Pocket Costs for Consumers Proposed copayments, coinsurance and deductibles higher than current plans
SUNNYVALE, Calif., June 18, 2013 /PRNewswire-USNewswire/ -- A new analysis from HealthPocket, Inc. of early health insurance rate filings finds that the least expensive plans under the Affordable Care Act (ACA) have higher out-of-pocket costs for consumers compared to current plans in the individual and family insurance market. While most states have yet to publish their rates, "Bronze Plan" filings from California, Connecticut, Ohio, Oregon, Rhode Island, Vermont, and Washington indicate that for these entry level plans consumers may pay more in deductibles, copayments, and coinsurance for their medical services than they do now.
Based on a review of over 9,500 health plans in the current individual and family health insurance market, copayments for doctor visits were estimated at $28 on average. In comparison, Bronze Plans averaged a $41 copayment — an increase of 46 percent. The lowest Bronze Plan copayment for a doctor was $15 and the highest was $60. For doctor visits where a coinsurance fee is charged instead of a flat fee copayment, the current national average is 24 percent. Bronze Plans that charge coinsurance averaged 27 percent, an increase of 13 percent.
The analysis also revealed that changes are coming to how deductibles work for doctor visits and that there will be significant increases in average plan deductibles. In the current pre-reform market, 37 percent of health plans include doctor visits as part of the deductible. For the new Bronze Plan filings, 84 percent had doctor visits subject to the deductible. For Bronze Plan consumers this means they are likely to be charged the full amount for some doctor visits until they have met their plans' deductible. In California, however, it is standard plan design that the deductible will not be applied for the first three doctor visits. In the seven states where HealthPocket examined rate filings, the current average medical deductible was $3,589. In those same states, the Bronze Plans' average medical deductible was 26 percent higher at $4,509.
"We know that consumers' number one concern about health insurance is what they will have to pay for it," said Kev Coleman, head of research & data at HealthPocket. "People shopping for insurance need to worry about two things: the cost of their monthly premium and what out-of-pocket costs they face. By considering both factors together rather than in isolation from one another, consumers can make the best financial decision for their healthcare."
HealthPocket selected the Bronze Plan as the focus of its investigation since it is the least expensive level health plan within the Affordable Care Act and, accordingly, expected to be the most popular among cost-conscious consumers. For most people without group insurance from an employer or other group, the Bronze plan is the minimum health insurance plan in which they can enroll that will satisfy the Affordable Care Act's mandate for people to purchase health insurance.
The results of the study were derived from qualified health plan rate filings within the individual and family health insurance market for the calendar year beginning January 1, 2014. Data on cost-sharing for currently available health plans was collected on June 11, 2013 from 9,727 health plans within the individual & family health insurance market.
This HealthPocket InfoStat is part of a series using health plan data to produce unbiased market analysis and guidance for consumers navigating America's changing health insurance environment. More information about out-of-pocket costs and Bronze Plans can be found at www.HealthPocket.com.
HealthPocket.com is a free website that compares and ranks all health plans available to an individual, family, or small business, so everyone can make their best health plan decision and save on their out-of-pocket costs. The Company uses only objective data from government, nonprofit, and private sources that carry no conditions that might restrict the site from serving as an unbiased resource. The founders of HealthPocket.com spent decades pioneering online access to health insurance information and knew they could offer something different that can positively change how people buy and use healthcare in the U.S. Learn more at www.HealthPocket.com.