As New Jerseyans examine their employee benefit offering provided by their workplace, many of them may soon wind up losing their coverage and it appears as though the Patient Protection and Affordable Care Act may be to blame.
Initially reported by the Newark Star-Ledger, as many as 106,000 residents of the Garden State could lose their healthcare plans, due to a provision within the ACA that requires all health plans to meet certain minimum levels of coverage. One of those plans, known as "basic and essential" – or B&E – fails to offer the services that are mandatory under the healthcare law.
The paper noted that B&E plans have been popular with many families in New Jersey, mainly because they are low cost. It's estimated that 71 percent of residents who get coverage through the individual market have a B&E plan.
Ultimately, if the plans aren't reformed or go through a massive overhaul, these plans may no longer be available. The paper warned that this may also lead to higher costs for consumers, as a recent Rutgers University study showed that individuals who don't qualify for subsidies could see their health insurance costs increase triple whenever their health plans expire.
What could also have a substantial impact on the overall cost of health insurance – not only in New Jersey but in the country at large – is a phenomenon known as "adverse selection." At a recent conference held in Bethlehem Township, Penn., health experts indicated that if healthy individuals opt not to purchase coverage – costing them a fee of $95 – it could make insurance premiums rise for everyone else, according to local newspaper The Morning Call.
