Dive Brief:
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The low-cost Essential Plan, coming January 2016 to the New York healthcare marketplace, is looking to attract young people with its income-based, no-deductible strategy.
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The plan is intended for those who have low incomes but do not qualify for Medicaid or Child Health Plus.
- Households at or below 150% of the federal poverty level will have no monthly premium, while those with incomes at 200% of the federal poverty level will pay a monthly premium of $20 per adult.
Dive Insight:
Proponents note the Essential Plan is becoming cost effective compared to the rising 2016 tax penalty for lack of health insurance.
As an example, the state suggests an Essential Plan member making $20,000 per year and using "moderate" healthcare services can expect to pay about $730 for their 2016 premiums and out-of-pocket costs. In comparison, the 2016 penalty for lack of insurance is $695 per person or 2.5% of income
Steve D. Wood, ACR Health’s assistant director of support services for insurance programs, said people can enroll in the plan beginning Nov. 1.
Insurers offering the plan include Excellus BlueCross BlueShield, Fidelis Care and United Healthcare.