Bronze Plan Could Be Most Popular Exchange Plan
The new Healthcare Exchange “metal” plans debut January 2014. These plans were based off the Massachusetts Health Exchange Plans which were called: Bronze, Silver, and Gold. ObamaCare has added one more plan called Platinum, making four options all together. According to a collaborative study from BU and U of Penn, the most popular plan of the MA Exchange was the Bronze plan with over 60% of all enrolled people. This behavioral study found that most people selected this plan because it cost the least per month. If this behavior holds true on a national level then the ObamaCare Bronze plan will be the most popular because it has the lowest monthly premium.
Why Bronze Plan is Most Popular
The “Heuristics and Heterogeneity in Health Insurance Exchanges: Evidence from the Massachusetts Connector” authors Keith Marzilli Ericson and Amanda Starc explain the data, “Plans that are the cheapest in their area receive a substantial increase in enrollment.” Basically they found that most people just looked for which plan cost the cheapest each month and selected it without considering other strengths and weakness of the plan.
Should People Select the ObamaCare Bronze Plan Because it Cost the Least?
Comparing the Massachusetts’ model and the ObamaCare model is not straightforward. Besides having four plans available under ObamaCare, we have discovered a few unique differences that could ultimately make the new Healthcare Exchange Bronze plan not necessarily the least expensive or the best choice.
- With the ObamaCare Bronze plan you have to meet your $5000 deductible before most services are met. If you are injured on a Bronze plan, you will spend a lot more out of pocket than those on the Silver or better plans.
- Only the ObamaCare Silver Plan offers federal cost-sharing subsidies to help offset the costs of deductibles, coinsurance, and copayments. These cost-sharing initiatives will make the new Silver plans much more competitive in price.
Brief Explanation of ObamaCare Benefits
The new Bronze plan only includes 3 doctor’s visits before the $5,000 deductible must be met. Whereas the Silver plan offers Rx, specialists, lab tests, and X-rays all before the deductible is met. It’s important to look at what benefits the plans have to offer, not just monthly cost.
“Selecting the cheapest health care plan is a lot like selecting the cheapest car at a use car lot, ” states Medicoverage co-founder Chris Mihm. ” You might pay less now but end up paying a fortune in repair bills. When selecting a health plan in the exchange, you will want to select the plan that has the “lowest total cost of ownership” ...meaning pick a plan that will save you money should you need medical services.”
Click here to compare each ObamaCare metal plan side-by-side.
Further Questions
If you have questions about the Bronze Plan, or any other “metal” plan call 800-930-7956.
Comments and Questions
Click to leave a Comment