House Republicans just released a proposal for replacing the Affordable Care Act. Whether this plan is good or not depends on your economic situation and your age, for those are key factors in this plan. However, insurers are seeing a lot of mixed results from this proposal. One of their key issues with the Affordable Care Act was that the risk pool in the public marketplace was skewed towards older and sicker individuals, which caused an uneven risk pool and continually increasing premiums. Insurers wanted more young, healthy individuals to join the marketplace plans to stabilize the pool and reduce the money loss. This new proposal does appear to incentivize younger individuals to join because it provides a reasonable tax credit to offset individual costs. However, it eliminates the individual mandate that requires individuals to have health insurance. This means that the young, healthy people that are needed in public risk pools are less likely to join because they feel there isn’t a need for it.
While there are some clear wins for insurers, the potential of losing large numbers of members is not appealing. It remains to be seen how this proposal will fare as it is reviewed as well as scored for costs, but it is clear that this may not be the result insurers were hoping to see; as a result, it may not be the result us consumers were hoping to see when our insurance bill comes in.
Full article here.