Concerned about soaring health care costs, Idaho on Wednesday revealed a plan that will allow insurance companies to sell cheap policies that ditch key provisions of the Affordable Care Act.It’s believed to be the first state to take formal steps without prior federal approval for creating policies that do not comply with the Obama-era health care law. Health care experts say the move is legally dubious, a concern supported by internal records obtained by The Associated Press.Idaho Department of Insurance Director Dean Cameron said the move is necessary to make cheaper plans available to more people. Otherwise, he said he fears the state’s individual health insurance marketplace will eventually collapse as healthy residents choose to go uninsured rather than pay for expensive plans that comply with the federal law.
It’s unclear whether these stripped down plans would be included in Idaho’s single state nongroup risk pool. If not — most likely since they would not be compliant with Affordable Care Act requirements — they wouldn’t reduce the risk of an adverse selection death spiral of which Cameron warns.
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