Ilovebenefits’s Blog

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Back to Co-Pays?

Editor’s note: Looks like Congress really doesn’t want the consumer to help control the cost of health care. They just want to make it easier for people to know what THEY have to pay. So, this from Greg Scandlen:


As part of Title II, Subtitle C, “Standards Guaranteeing Access to Essential Benefits” there is this –

“In establishing cost-sharing levels for basic, enhanced, and premium plans under this subsection, the Secretary shall, to the maximum extent possible, use only copayments and not coinsurance.” (page 108)

For some reason the House of Representatives believes that co-payments are good and coinsurance is bad. It’s not that one is more affordable than the other. All “cost-sharing” is limited to $5,000 per individual and $10,000 per family per year.
Most corporate HR people are trying to move away from co-payments in favor of coinsurance after many years of experiencing each. Coinsurance reveals to the consumer the underlying cost of the services consumed, while co-payments hide that knowledge.
And maybe that’s the point. The legislation is already hiding the cost of the insurance coverage by providing income-based subsidies. What a consumer will pay for coverage has no relationship to the cost of the coverage. It is institutionalizing ignorance.


December 3, 2009 - Posted by | Federal Government, healthcare | , , ,

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