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Why You Should Care About How HHS Calculates 'Actuarial Value'
John Goodman's Health Policy Blog Link to more items from this source
[Opinion]
Jan. 27, 2014
"If [HHS] overestimates actuarial value, which it appears that it has done, the bloated insurance plans required by ObamaCare can be offered with higher deductibles, copayments, and other out-of-pocket costs than would otherwise be the case. All else equal, higher deductibles and out-of-pocket costs also enable lower premiums.... When the actuarial value calculations were carried out, the amount of cost sharing that ObamaCare allowed depended upon the government's estimate of the overall plan costs for plans that have not yet taken effect. In a methodology report, HHS explained how it estimated plan costs for its standard population. With one exception, the choices made would likely overstate the cost of essential benefits coverage."

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