People with recently cancelled health plans can find affordable alternatives with comparable—or even better—benefits in the health insurance marketplaces, according to a new study released by the Robert Wood Johnson Foundation. The study, which looks at whether or not people with cancelled plans will be better off in the exchanges, includes the average prices for marketplace plans in all 50 states.
Because people with low to moderate incomes may receive financial assistance to help offset cost of premiums in the marketplace, the researchers say people who have had their plan cancelled may not have to make any direct contribution to the cost of their premium, depending on which plan they select in the marketplace.
Study authors from the Urban Institute say that some individuals will pay more in monthly premium costs than they did under their cancelled plan, but these people will benefit from plans being required to cover essential health benefits and adhere to limits on out-of-pocket expenses. They say the provisions make it possible for people to ultimately pay less when all their previous out-of-pocket costs—deductibles, co-pays and premiums—are included.
“Although many people were surprised to see cancellation notices regarding their health insurance policies, many are now finding that they can obtain a plan that is more comprehensive, and often lower cost, in the health insurance marketplaces,” said Katherine Hempstead, who leads coverage issues at the Robert Wood Johnson Foundation. “With the combination of subsidies to help purchase coverage and the requirement for plans to cover essential health benefits, many consumers are going to be hard-pressed to find a better deal than what’s being offered in the marketplaces.”
January 28, 2014
