Coverage You Can’t Keep, Ctd

Cohn explains why insurance companies are terminating policies:

One of Obamacare’s primary goals is to make sure everybody has a decent health insurance policy. Under the law, every plan should include a comprehensive set of benefits and put some limits on what people pay out-of-pocket. The policies now available in the non-group market frequently don’t meet those standards. They might leave out benefits like maternity or mental health—or they might have truly exorbitant deductibles. Starting next year, insurers can’t sell new policies unless they meet Obamacare’s standards. That will tend to make insurance more expensive.

A TPM reader provides a positive personal perspective on these terminations:

I’ve been self-employed for 13 years. Most of that time, I’ve had an HSA with a high-deductible policy; the deductible has ranged from $3,000 to $5,500. A traditional individual policy would be cost-prohibitive because–although I have low blood pressure, heart rate, and cholesterol, work out regularly, take no prescriptions, and have no chronic conditions–I’m deemed to have preexisting conditions, basically because I’ve dared seek medical attention in the past. I was once rejected by an insurer based on a single episode of sciatica five years earlier. I don’t think people who have had employer-provided coverage have any idea what the individual health insurance market has been like.

Anyway, you may have seen in the past couple of days how some insurers are being forced to drop thousands of individual policies because they’re not ACA-compliant. My current policy is among those, so I’ve looked for a new policy with my insurer (Anthem). And, thanks to the ACA, I can finally get a more traditional policy because the insurer has to offer ACA-compliant plans and can’t exclude for preexisting conditions. As a result, I’m switching to a Silver level plan with a $2,000 deductible, free preventive care, reasonable co-pays ($30-$45) for doctors’ visits pre-deductible and reasonable co-insurance (25%) post-deductible, all for a premium that’s only $20 more than what I was paying. Significantly better coverage, in other words, for about $240 more per year. The media, however, are depicting the end of those policies as a bad thing, apparently because insureds may have to pay more now. But they don’t mention that these insureds will be getting much better coverage. It’s not an apples-to-apples comparison.