Requiring Essential Health Benefits in Insurance Plans Is Part of Getting the Healthy to Subsidize the Less Healthy

March 23, 2017

Morning Edition had a segment on Republican efforts to repeal Obamacare which reported on the desire of many Republican members of Congress to reduce the number of essential health benefits that must be covered by insurance. While the piece noted that part of the reason for the required benefits is to ensure people are covered in important areas, this is probably the less important reason for imposing requirements.

If people are allowed to pick and choose what conditions get covered, many more healthy people may opt for plans that cover few conditions and cost very little. If this happens, then plans that offer more comprehensive coverage will have a less healthy pool of beneficiaries, and therefore have to charge high fees. This will make insurance unaffordable for the people who most need it.

 

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