Health Insurance Shift: Catastrophic Plans Gain Popularity Amid Rising Costs
Amidst the escalating expenses in healthcare, a growing number of Americans are opting for catastrophic insurance plans, which primarily cover severe medical emergencies. Iowa Representative Mariannette Miller-Meeks views this trend positively, suggesting it may motivate healthier lifestyle choices.
During an appearance on the 13th and Park podcast on January 12, she stated, “If you had a health savings account or individual health plan, you purchase your insurance for catastrophic, then there is an incentive for you to adopt behavioral patterns or health practices that actually lower cost and keep you healthier.”
Catastrophic insurance, often labeled as junk insurance, is characterized by high deductibles and low premiums. These plans typically cover only serious health issues, such as cancer or significant injuries, while excluding routine care like regular doctor visits and most prescriptions.
Miller-Meeks further remarked that the presence of deductibles and copays encourages consumers to have “some skin in the game,” potentially driving them to adopt healthier habits, such as increased physical activity or quitting smoking.
The shift towards catastrophic plans has been influenced by the lapse of Affordable Care Act tax credits, which previously helped 22 million Americans manage their monthly premiums. This change, coupled with the rising costs of food and housing, has intensified the trend.
On January 8, Miller-Meeks cast a vote against a bipartisan proposal to extend these credits for an additional three years. Instead, she advocated for her own legislative plan, which proposes the elimination of the credits and suggests that the federal government assist with some out-of-pocket expenses for certain low-income individuals.
According to the Congressional Budget Office, Miller-Meeks’ proposal could decrease premiums by up to 12%, though it is noted that most consumers would see less savings compared to the previous credits. Additionally, it is estimated that 100,000 individuals might opt out of insurance altogether due to increased costs.
Both the extension of the tax credits and Miller-Meeks’ bill have passed the House. However, neither is anticipated to advance in the Republican-majority Senate.
The post Miller-Meeks says costly insurance could lead to healthier lifestyles appeared first on American Journal News.
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