High premiums for catastrophic coverage violate consumer expectations

Levine has a Bronze plan, which has a $6,800 deductible, up from $6,500 last year. This year, Anthem has ended out-of-network coverage in its Bronze plans, turning them into EPOs, throughout much of the state.

That means Levine will be paying $517 month for a policy he says he may not even use.

“It has turned into a catastrophic policy,” he said, referring to plans intended to only cover large unexpected medical bills.

Source: As Obamacare enrollment nears, some Californians see big hikes in health premiums

This goes to the heart of the low value perception of bronze-rated individual health plans. When people are paying their own costs out of pocket for routine and minor medical care, they reasonably expect their premiums to be lower. Paying more than $500 a month for catastrophic coverage violently upends that expectation.


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 fpilot@pilothealthstrategies.com or call 530-295-1473. 

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Frederick Pilot

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