Some health plan issuers didn’t like grandfathering of pre-3/23/10 plans, concerned about the actuarial and risk pool impact of splitting the individual market into two segments: the “old” and the “new” markets as termed by President Obama at today’s briefing. The old market can operate under pre-Affordable Care Act standards, which mandate specific benefits and minimum actuarial value for all plans sold after January 1, 2014.
Now that states will have the option of temporarily extending post- 3/23/10 plans as Obama announced today, plan issuers complain actuarial projections upon which they based their new offerings on are being thrown out of kilter. They also worry those buying new plans subject to the ACA standards for benefits will be those more likely to use them, threatening the actuarial stability of the risk pool for those covered under the new plans.
Need a speaker or webinar presenter on the Affordable Care Act and the outlook for health care reform? Contact Pilot Healthcare Strategies Principal Fred Pilot by email