Feds aim benefits scenario at young invincibles

Federal agencies want to change the standard “nutrition label for health plans” in a way that could make it more appealing for young, healthy insurance buyers.

The agencies — the Internal Revenue Service (IRS), the Employee Benefits Security Administration (EBSA) and the U.S. Department of Health and Human Services (HHS) — have included the change in a package of draft summary of benefits and coverage (SBC) regulations.

If adopted, the regulations would update the way the agencies implement the SBC provisions in the Patient Protection and Affordable Care Act (PPACA). Issuers of individual coverage and the issuers and administrators of group coverage are supposed to offer SBCs to enrollees and prospects, to help consumers make “apples to apples” comparisons of health plans.

Originally, regulators were going to require SBC creators to offer consumers three scenarios illustrating how coverage might work in the real world. One would deal with managing diabetes, a second with having a baby, and a third with dealing with breast cancer.

See also: PPACA: Feds Unveil Final Benefits Summary Rule.

Regulators eventually eliminated the breast cancer scenario. SBCs now include only a diabetes scenario and a pregnancy scenario.