Obamacare quirk to broaden access to plans
Subsidy increase means free coverage for many
WASHINGTON — Low-income people in about half of U.S. counties will be able to get a taxpayer-subsidized Obamacare policy for free, according to a new study, suggesting that some actions by President Donald Trump against the health law could backfire.
Monday’s analysis of government data by the nonpartisan Kaiser Family Foundation runs counter to the perception of staggering across-theboard increases in costs for consumers under the Affordable Care Act.
The study found that in 1,540 counties, a hypothetical 40-yearold making $25,000 a year can get a basic “bronze” plan under the ACA next year for zero monthly premium.
The final number of counties with available free plans is certain to be higher because the Kaiser study examined only the 39 states using the federal Healthcare.gov website for sign-ups. In those states, nearly 60 percent of counties will have free bronze plans.
“Because of the way that premiums are set this year, people have to shop around to make sure they are getting a plan that makes sense for them,” said Gary Claxton, a co-author of the report. “Telling people that the choice is to pay a penalty (for being uninsured) or take a free plan is a pretty attractive proposition.”
Separately, the government also released official numbers Monday. The Health and Human Services department said sticker-price premiums are going up 37 percent for a hypothetical young adult buying a type of midrange “silver” plan.
HHS said insurer participation is down, with 29 percent of current Obamacare customers having just one carrier next year in their community. And the government noted that subsidies for premiums are also rising about 45 percent on average.
The Kaiser study illustrates what’s happening under the hood as the complicated moving parts of the health law’s different subsidies and coverage levels respond to actions by the administration.
Trump recently shut off government subsidies to insurers for providing lower co-pays and deductibles to people with modest incomes, citing legal questions about whether those payments were properly approved by Congress.
But insurers have raised premiums, which are also subsidized.
Because consumers can use their premium subsidy to buy any level of coverage, that money can be enough to cover the full price of a lower-cost bronze plan.
Bronze plans are not for everybody, since they typically have annual deductibles of $6,000 or more. But they may appeal to younger people or those who expect to have just a few doctor visits over a year.
Rising premium subsidies also can make “gold” plans more affordable. Those offer a higher level of coverage, comparable to what employers provide.
Sign-up season starts Wednesday and ends Dec. 15.