The idea of a new "copper" tier of health plans is being pitched for the most healthy and cost-conscious consumers.
While the bronze, silver, gold and platinum tiers of health plans can be good deals for individuals who need routine healthcare, there has been concern about whether the premiums for bronze plans can still be low enough to attract young and healthy consumers in the years to come, as more young people insurance and as the non-compliant policy extensions fade out.
In Washington, there is some support among insurers and lawmakers to amend the Affordable Care Act and add a new copper tier that would have 50 percent actuarial benefits, compared to 60 percent for bronze, as a bill sponsored by Alaska Senator Mark Begich would do, similar to a catastrophic plan proposed by America's Health Insurance Plans.
These plans could come with premiums 18 percent cheaper than bronze plans, according to an analysis by Avalere Health. If enacted, the lower premiums could be a big factor in drawing in more consumers and help stabilize the overall risk pool. The lower premium would result in a slight increase in estimated enrollment in the new marketplace, Avalere analysts concluded.
The copper plan would have no-cost preventive services and cover federally-defined essential health benefits, but it would also mean individuals would have higher out-of-pocket costs--a prospect that has drawn criticism from patient advocates who argue that the plans would be affordable only when they're not being used.
Still, AHIP and other industry advocates believe there is a consumer segment that could be well-served by a copper plan--including consumers who might otherwise choose to not buy insurance and just pay the individual mandate penalty.
"We know that affordability, stability, and accessibility are top of mind for consumers when it comes to their health care," AHIP President and CEO Karen Ignagni said earlier this year.
"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," she said.