Hospitals seek to assist consumers with insurance premiums

Some hospitals in New York, Florida and Wisconsin are exploring ways to assist low-income consumers who are struggling to pay the premiums for their government-subsidized insurance plans, according to a report by Kaiser Health News.

The premium assistance programs would not only help consumers afford their insurance coverage but also help ensure the hospitals get paid.

However, the programs are not gaining the support of insurers who have written to the Obama administration about their concerns that the hospitals are acting in their own financial interest by creating the programs. The insurers believe the premium assistance programs will drive up costs for everyone and potentially discourage people in good health from purchasing coverage, according to the report.

It is still unclear whether federal regulators will permit the hospitals to create the assistance programs. In October 2013, a letter from the Obama administration to Rep. Jim McDermott (D-Wash.) indicated healthcare organizations could assist subsidized policyholders in paying their premiums. However, in November of last year, CMS discouraged hospitals and drugmakers from making "third party payments" because they could "skew the risk pool."

Even with the uncertainty surrounding the programs, some groups, including the South Florida Hospital and Healthcare Association in Dania Beach, Fla., are seeking donations from their hospitals to help assist consumers with their premium payments.  

More articles on subsidized insurance:

10 key policy issues facing healthcare
Undercover agents got subsidized insurance using fake IDs
4 Challenges That Could Hinder PPACA Success