I previously discussed that President Obama and the House have proposed 2 different plans to allow you to keep your existing health plan.
In my opinion, neither is a very good idea. Both plans say they allow holders of existing plans that do not meet ACA requirements to keep there existing plans. One problem is that they allow this cannot actually do this since that decision is up to the insurance company. If they do not choose to offer the plan, you cannot buy it.
The other problem is that many (if not all) of these plans do not meet the requirements of the ACA. For example, there may be huge deductibles, maximum benefits, various exclusions, and so forth which limit the value of this insurance. Insurance companies have calculated the rates on ACA compliant policies based on estimates of the pool of insureds for ACA policies. Now both plans would decrease that pool.
There may be other problems when changing the rules less than 2 months before policies take effect.
The remaining 45% of health care funding comes from insurance premiums paid by the public, for which companies compete on price, though the variation between the various competing insurers is only about 5%. However, insurance companies are free to sell additional policies to provide coverage beyond the national minimum. These policies do not receive funding from the equalization pool, but cover additional treatments, such as dental procedures and physiotherapy, which are not paid for by the mandatory policy.
Thanks for sharing your thoughts. I didn’t think policies that were cancelled and failed to meet ObamaCare minimums were publicly funded at all.