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Tag: Health Exchange

Rate Shock vs. Benefit Shock

Will we have rate shock?

It looks to me like consumers will have a choice when they get to look at the health plans available on the new “Obamacare” health insurance exchanges––rate shock or benefit shock. While there has been lots of focus on the issue of rate shock, I will suggest that just as big an issue may well be benefit shock—that consumers will look at what they will be getting for their premium payments and that they will be surprised at what their out-of-pocket costs will be and before they get anything.

The chart above was prepared by Covered California, the state-run California exchange. This chart does not include specific California plan premiums. What it does show is the net of subsidy cost a single person would pay at the various income points for the second lowest cost Silver plan, as well as the deductibles and co-pays they can expect to see from the standard Silver plan.

While the benefit plan structures may vary a bit from state to state, this gives us a pretty good idea of what consumers can expect in all of the states (click on chart to enlarge).  A single person making $22,980 per year would face a premium, net of subsidies, of $121 per month. That’s pretty good.

WebMD–Nan Forte explains Health Exchange

WebMD introduced a new series of Health 2.0 style forums last week called Health Exchange. Not everyone was thrilled–in fact John Moore gave it a right padding over at Chilmark mostly because of usability issues. I got Nan Forte, Exec VP at WebMD to explain and she talked at length about how much user testing they’ve done, WebMD’s respect and interest in the rest of Health 2.0, and how tricky it is to deal with those pesky users (my words not hers!). Take a listen to the interview.

Nan Forte, WebMD

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