America's Health Insurance Plans has expressed support for the creation of a new, lower-cost catastrophic coverage option under the Patient Protection and Affordable Care Act.
Consumers purchasing coverage through the exchanges can select health plans from four tiers (bronze, silver, gold and platinum), each representing a different level of benefits and cost sharing. However, at a minimum, plans in each of those tiers must offer certain essential health benefits, such as coverage for pediatric services, prescription drugs and laboratory services. For those younger than 30 and others who qualify through financial hardship, there is also a catastrophic coverage option available under the PPACA.
The new, lower tier suggested by AHIP would offer actuarial value just below the existing minimum requirement, although it would still cover the essential health benefits, have no annual or lifetime benefit limits and cover all preventive services with no cost-sharing, as mandated by the PPACA. This lower tier of plans would make health insurance more affordable for the public with lower monthly premiums, according to AHIP.
AHIP President and CEO Karen Ignagni has previously advocated for a lower tier of exchange plans. In March, she told C-SPAN the Obama administration could persuade a greater number of healthy Americans — who are needed to stabilize the market by balancing out sicker consumers — to enroll in exchange plans by offering a lower tier of coverage.
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