Health Insurance Prices, Restrictions Now On Federal Consumer Website

Health Insurance Prices, Restrictions Now On Federal Consumer Website
http://tinyurl.com/2dyzsf4

Oct 01, 2010

http://www.healthcare.gov/

Healthcare.gov, the website created by the new health law to be a
one-stop consumer resource, today unveiled detailed cost and benefits
information about health plans available in the individual insurance
market. It's the first time such data have been made public - either by
the government or industry.

The site will also list the percentage of applications turned down and
of people who are charged more than that health plan’s advertised price.

HHS officials say now consumers will be able to solve some of the
mysteries behind costs and denials. By entering basic information such
as age range, location and health status, visitors can compare plans
based on monthly premium estimates, maximum out-of-pocket limits, annual
deductibles, and coverage for benefits such as mental health, substance
abuse and pregnancy.

Since its July 1 launch, healthcare.gov has had more than 1.8 million
visits, according to Todd Park, the chief technology officer of the
Department of Health and Human Services, who says visitors are
"overwhelmingly positive" about the site.

KHN reporter Jessica Marcy recently spoke with Park and Karen Pollitz,
who heads the consumer support division at HHS Office of Consumer
Information and Insurance Oversight. Here are excerpts of the interview:

What exactly are the prices? Are they sticker prices or real prices?

Karen Pollitz: Sticker price would be a good way to describe it. Price
has always been sort of an elusive concept in the individual health
insurance market and it remains so today. Insurers all have a base
price, or a sticker price, that they may advertise or they may post for
a health insurance policy. But, the price that you actually pay will
depend on characteristics unique to you – your age, your family size,
where you live, your gender, also your health status and your health
history. While some of these demographic factors may be posted and
knowable to you, you won’t really know until you try to apply for the
policy whether you’ll be accepted at all or be given something close to
the sticker price. [Editor's note: while in car dealerships the "sticker
price" usually is higher than the price the buyer negotiates, in this
case, the "sticker price" is the lowest, or base, price.]

Something that is unique now, and it’s really a breakthrough, is that we
show on healthcare.gov the sticker price -- what we call the premium
estimate, for each of the policies that is displayed. Then we also give
consumers new data about how often applicants for that policy get turned
down or get charged more than the advertised price, so it’s at least
clueing you in to what to expect when you leave this information site
and go out to buy coverage.

What do you think will be the impact of publishing the information?

Todd Park: We believe that information empowers consumers and empowered
consumers make for more efficient and effective marketplaces --
marketplaces that are more competitive, that pay more attention to what
consumers want, where consumers can express their preferences more
energetically and aggressively.

Consumers currently can’t sign up directly for policies on the site.
Does that discourage users and will they ever be able to buy coverage there?

Park: They will not be able to buy coverage on healthcare.gov. Secretary
Sebelius has been very, very clear that she never wants healthcare.gov
to become a sales site. She wants it to be an information utility that
people use to research their options.

Pollitz: Down the road, when [health insurance] exchanges are developed,
there will be an option for consumers to select a health plan and enroll
online if they want to purchase coverage through the exchange.

Would you like to add any more features or data? If so, what and when?

Pollitz: Absolutely. The next thing is to provide comparable information
for small employers to what [is available] for individuals and families.
We will be developing measures of plan performance and other important
information tools for consumers so that they can understand more about
how these plans will operate in practice, how they would actually cover
not only specific benefits but also whole episodes of care. We have a
long way to go and a lot of exciting things to come.

Why do you think so many Americans continue to be confused by the new
health law?

Pollitz: The health care system is incredibly complicated. Sorting all
of that out is going to involve a lot of changes. Certainly there has
been continued argument about whether we should be moving down this way,
so there’s a lot of disinformation. I’m hoping that whatever else is
happening in the fray, that this website continues to stay on the path
and just give people straight up information -- not a sales job one way
or the other of products or politics.

If the GOP does take over Congress, is there any concern that they might
defund the program?

Pollitz: I can’t really speak to that. Right now, what I do is very much
focused on implementation [of the new law] and this week on
implementation of healthcare.gov.


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