Americans Turn to Catastrophic Insurance Amid Rising Healthcare Costs
The increasing expense of healthcare is prompting many in the U.S. to opt for catastrophic insurance plans, which primarily cover severe medical emergencies. Iowa Representative Mariannette Miller-Meeks has expressed support for this development, suggesting it could motivate individuals to adopt healthier lifestyles.
During a discussion on the 13th and Park podcast on January 12, Miller-Meeks stated, “If you had a health savings account or individual health plan, you purchase your insurance for catastrophic, then there is an incentive for you to adopt behavioral patterns or health practices that actually lower cost and keep you healthier.”
Catastrophic insurance, sometimes called junk insurance, features high deductibles and low premiums, covering only critical ailments or injuries such as cancer or fractures. Routine medical services, such as regular doctor visits or most prescriptions, are not included.
Miller-Meeks emphasized that the structure of deductibles and copays requires policyholders to have “some skin in the game,” potentially encouraging them to engage in healthier habits like exercising more or quitting smoking.
The shift towards catastrophic plans is partly attributed to the end of Affordable Care Act tax credits, which had previously made monthly premiums more affordable for approximately 22 million Americans. Additionally, the increased costs of living essentials, such as food and housing, have contributed to this trend.
On January 8, Miller-Meeks voted against a bipartisan initiative to extend these tax credits for another three years. Instead, she advocated for her own proposal, which aims to remove the credits while offering federal assistance for out-of-pocket expenses to some lower-income individuals.
According to the Congressional Budget Office, Miller-Meeks’ proposal could potentially decrease premiums by up to 12%, although it is noted that most people would save less compared to the previous credit system. An estimated 100,000 Americans might choose to forgo insurance altogether due to the increased costs.
Both Miller-Meeks’ proposal and the plan to extend the tax credits have been approved by the House. However, neither is expected to advance in the Republican-controlled Senate.
The post Miller-Meeks says costly insurance could lead to healthier lifestyles appeared first on American Journal News.
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