Association Health Plans

Geez, what will they come up with next to undermine the ACA, reduce Health Benefits and increase revenue for Corporations?

You may think that plans to allow individuals to become part of Associations in order to purchase Health Insurance sounds like a good idea but please look deeper into the offerings.

An Insurer selling an “association plan” would be permitted to reduce or eliminate the Essential Health Benefits required to be offered by the ACA. (This type of offering is also specifically contradicts the federal ERISA laws which govern employee benefits). Why? Because in order for the ACA to succeed all levels of risk must be part of the Health Insurance “pool”. As with all types of insurance rates are determined by actual usage averaged by the participants, i.e. a large pool of older sicker people will have higher rates that a pool including younger and healthier people. Those that opt for lesser benefits will remove themselves from the healthier pool and raise rates for others.

And, just imagine one of those who opted for fewer benefits gets sick and their needs are not met by their Health Insurance? You guessed it, they wind up right back needing taxpayer money (medicaid) to meet their medical needs and, hopefully, avoid bankruptcy.

Agree or disagree? Let me know!