Payers

Less than a percent of Americans at risk of losing individual market plan & paying more for coverage

Though it’s upsetting that patients on individual market plans are opening mailboxes to find termination letters from insurers, a new report from Families USA puts the scope of those letters into perspective. Less than 1 percent of the non-elderly population is at risk of losing their current individual market plan and paying more for coverage, according […]

Though it’s upsetting that patients on individual market plans are opening mailboxes to find termination letters from insurers, a new report from Families USA puts the scope of those letters into perspective. Less than 1 percent of the non-elderly population is at risk of losing their current individual market plan and paying more for coverage, according to the data. Even that number is a conservative estimate, Executive Director Ron Pollack said, as it takes into account 15.2 million Americans on private, non-group plans (rather than a percent of those who will or won’t be able to keep their plans).

He urged the media to “keep it in perspective.” Below is an infographic from the group explaining how it arrived at the less-than-a-percent statistic:

(Obviously not everyone benefits, as the infographic both explains and then contradicts, but the methodology behind the report is explained well.)

Sponsored Post

Physician Targeting Using Real-time Data: How PurpleLab’s Alerts Can Help

By leveraging real-time data that offers unprecedented insights into physician behavior and patient outcomes, companies can gain a competitive advantage with prescribers. PurpleLab®, a healthcare analytics platform with one of the largest medical and pharmaceutical claims databases in the United States, recently announced the launch of Alerts which translates complex information into actionable insights, empowering companies to identify the right physicians to target, determine the most effective marketing strategies and ultimately improve patient care.

Families USA lobbied for the ACA and remains in support of the law.

From the organization’s press release:

According to the Families USA report, more than 10.8 million of the people with individual health coverage today are in households with incomes below 400 percent of the federal poverty level (approximately $46,000 in annual income for an individual, $94,200 for a family of four).

As a result, 71 percent of those who currently have individual health coverage will be income-eligible for substantial premium tax credit subsidies or expanded Medicaid coverage—assuming their state decides to accept the federal dollars for expansion—through the Affordable Care Act. The premium tax credit subsidies will reduce consumers’ annual premium costs by thousands of dollars, and most people in Medicaid will pay no premiums at all.

These types of plans were considered the “wild, wild West” of health plans, Pollack said, and before Obamacare, only 35.5 percent of those with this type of coverage maintained it for more than one year. (Reading between the lines? Chances are 2/3 of these people would have dropped, been dropped or forced to select new plans without Obamacare.) Income didn’t affect that result, according to the report.

Those that would maintain that coverage for more than a year and don’t qualify for financial help with buying new coverage: 0.6 percent of the American population. According to the group:

“These are the only people who can lose the individual coverage they otherwise would have retained and who are not income-eligible for premium tax credit subsidies or Medicaid.”

“Although President Obama was right to express his concern about, and to propose corrective action for, the people at risk of losing health coverage due to the Affordable Care Act, it is important to keep a perspective about the small portion of the population that might be adversely affected,” Pollack said. He said the fix was responsible because of people’s trouble reaching the website, especially the part about insurers having to explain to consumers there are “better” options.

“Not to say this is not a problem,” Pollack said.

For more from the report, click here.

Follow MedCity News on Facebook and Twitter for more updates.