Kokomo Tribune; Kokomo, Indiana

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June 11, 2014

Insurers propose changes to Obama health law

WASHINGTON (AP) — Insurers want to change President Barack Obama's health care law to provide financial assistance for people buying bare-bones coverage. That would entice the healthy and the young, the industry says, holding down premiums.

So-called catastrophic plans are currently not eligible for the law's subsidies, and only 2 percent of the 8 million consumers who signed up this year picked one. Subsidies bring down the cost of monthly premiums.

The proposed change is part of a package of recommendations that America's Health Insurance Plans, the main industry trade group released Wednesday. Others address how to smooth transitions for consumers who switch insurance companies, as well as making it easier for patients to find out which hospitals and doctors are in particular plans and whether their medications are covered.

"What is crucial for public policy leaders is to balance access and affordability," said Karen Ignagni, head of the trade group. "Unless people feel that coverage is affordable, they won't participate in the system."

Adults ages 18-34, the health care law's most coveted demographic, are under-represented among those enrolled for subsidized private insurance this year. Insurers are currently filing their proposed premiums for 2015, and increases of 10 percent or more are anticipated. Nonetheless, the new state insurance exchanges are poised to grow, with more carriers entering the market to compete for business.

Given the polarized politics of health care in Washington it's unclear how the industry's latest proposal might advance. It might get a chance if Republicans in Congress abandon their crusade to repeal Obama's law and start focusing on making changes to individual components.

The proposal could also encounter opposition from consumer groups, which take a dim view of catastrophic plans. Some consumer organizations have instead called for reducing out-of-pocket costs borne by consumers who buy a midlevel silver plan, the pick of 65 percent of those signed up this year.

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