Majority of Individual Health Plans Fall Below Minimum Requirement of PPACA

More than half of all Americans who had individual health insurance in 2010 were enrolled in plans that would have failed to provide sufficient coverage under the Patient Protection and Affordable Care Act, according to a Health Affairs report.

The majority of individuals buying their own insurance were enrolled in plans with an actuarial value below 60 percent, meaning the plans covered, at the most, a little over half of the enrollees' health expenses, according to the report.

The PPACA assigns actuarial values to health benefits, which fall into four categories — bronze, silver, gold and platinum. Any plan that falls below the bronze rating (a 60 percent actuarial value), will considered inadequate health insurance, beginning in 2014. The Health Affairs study concluded that many of the current individual health insurance plans fail to meet the PPACA's bronze rating standards.

More Articles on PPACA:

Moody's: Health Insurers Face Negative Credit Risk if PPACA Stands
Study: Health Insurers Could Lose $1 Trillion if PPACA Falls
House Passes Bill to Cut Medicaid, Part of PPACA

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