The United States Department of Health and Human Services (HHS) has issued a new ruling: Lower income individuals who do not have a bank account can pay their health insurance premiums through health insurance exchanges with a prepaid debit card.
This rule will make it easier for people without a bank account to obtain insurance through the exchanges. The ruling eases worries over whether insurers would only take payments by check or credit card. Millions of people do not have a checking account, because they can’t afford the fees associated with such accounts.
This HHS ruling is significant, as a report earlier this year from tax preparation company Jackson Hewitt found that 27% of uninsured Americans who are eligible for subsidies under the Affordable Care Act do not have bank accounts. Jackson Hewitt also said that final rule will benefit as many as 8.5 million Americans who do not have a bank account.
HHS did not require that issuers offer consumers the option of automatic deductions from credit or debit cards in the ruling. According to the HHS report, some commenters had concerns about whether all issuers would be able to support automatic deductions. The ruling opted instead to allow issuers to decide whether to accept automatic deductions from debit or credit cards.
The aim of the Affordable Care Act and the health insurance exchanges that have been set up state-by-state is to make it easier for individuals to obtain comprehensive, affordable health insurance. The HHS ruling could make it easier for millions to pay for insurance.
Benefit Packages will be an exchange certified agency and can help you determine your best options for coverage, whether inside or outside California’s health insurance exchange. We have been helping individuals and business find affordable insurance for decades, and we work with reputable carriers like Anthem Blue Cross and Blue Shield. Call us today for a quote, or for more information about the new healthcare laws, at 1-800-356-3615.