Avalere Health has estimated the cost savings that could result from a new, less-expensive tier of insurance coverage, if legislation were to permit it. Currently, the Affordable Care Act requires all health plans offered in the individual and small group markets to meet standards for bronze, silver, gold or platinum coverage. The Avalere analysis, using similar methods to those used by the Congressional Budget Office, showed offering a ‘copper’ plan could lower spending by $5.8 billion over 10 years; reduce taxes by $5.5 billion over the same period; cut the deficit by $0.3 billion; and reduce premiums by 18 percent from the average Bronze plan premium in 2016. The analysis was funded by the Council for Affordable Health Coverage. Previous Avalere research has shown that lower actuarial value products are typically associated with higher copayments and deductibles borne by consumers.
See today’s analysis.
