The U.S. Department of Health and Human Services (HHS) recently announced states will determine the medical care benefits available for purchase through their respective healthcare exchanges.
The decision, according to HHS, will allow states more flexibility and freedom in their implementation of the Affordable Care Act as they set the terms for "essential health benefits." These are the items and services which must be included in any health insurance plan sold in the individual or small group markets.
"Under the Affordable Care Act, consumers and small businesses can be confident that the insurance plans they choose and purchase will cover a comprehensive and affordable set of health services," said HHS Secretary Kathleen Sebelius. "Our approach will protect consumers and give states the flexibility to design coverage options that meet their unique needs."
States will look at existing programs, including federal, state, small group and HMO health insurance policies, in order to devise an appropriate benchmark for future plans to be offered through the health insurance exchange.
This method, Bloomberg reports, could lead to significant variations from state to state. Federal plans, the news source notes, often cover prescription drugs as a basic benefit, while about 15 percent of small business plans do not.
