Category Archives: Catastrophic plans

Copper, or Cop Out?

The recent bipartisan health care bill, posted here, is an attempt to save the cost-sharing reimbursements that the Orangutan ended last week, and that the White House (the adult day care center) has not endorsed.

This is what Health Care.gov says about these copper plans, with commentary from Don McCanne of Physicians for a National Health Plan.

HealthCare.gov
ACA Catastrophic Plans
Catastrophic health insurance plans have low monthly premiums and very high deductibles. They may be an affordable way to protect yourself from worst-case scenarios, like getting seriously sick or injured. But you pay most routine medical expenses yourself.
Deductibles — the amount you have to pay yourself for most services before the plan starts to pay anything — are very high. For 2017, the deductible for all Catastrophic plans is $7,150.
According to Dr. McCanne, the bill will extend CSR’s for two years in exchange for concessions from Sen. Patty Murray.
One of those concessions, Dr. McCanne says is  to allow anyone to purchase on the exchange the catastrophic plans that are currently available only to individuals under 30 or those who qualify for certain hardship exemptions. These plans are sometimes referred to as copper plans, indicating that they have an actuarial value below the other metal tier plans (bronze, silver, gold, and platinum).
The appeal of these plans, he adds, is that their premiums are very low, but that is because their actuarial value is only 50 percent – they cover an average of about half of health care costs.
For 2017, the deductible for these plans is $7,150.
He believes that the concept that we can take beneficial policies and detrimental policies and combine them to come up with a reasonable compromise is a fallacy. Bad policies are bad policies, and they cannot be neutralized by political accommodations.
His solution is a national health plan.
Otherwise, it is either copper or a cop-out.
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