Consumer advocates are concerned about a proposal by two insurance companies to offer benchmark plans on Maine’s health insurance market that provide skimpier coverage.
Anthem initially sought permission for what’s known as a Silver-level plan at a cheaper rate with fewer benefits, and now Community Health Options wants to offer something similar to stay competitive.
Steve Butterfield of Consumers for Affordable Health Care says if the Maine Bureau of Insurance grants approval, it would be harmful for consumers.
“It’s not good for consumers to have insurance companies competing trying to figure out who can offer the skimpiest benefit structure for, frankly, the highest amount of premiums, since they’ve all asked for increases this year,” he says. “This is a particularly important couple of plans. The lowest-cost Silver plans matter hugely to everybody who gets tax credits.”
That’s because tax credits are calculated according to the second-lowest cost Silver plans. Butterfield says consumers may only be able to afford plans that offer less coverage if the proposals are approved.
This story is made possible by a grant from the Doree Taylor Charitable Foundation.
