Come for the politics, stay for the snark.

Let me file that under fuck it.

Some judge needs to shut this circus down soon.

I see no possible difficulties whatsoever with this fool-proof plan.

Boeing: repeatedly making the case for high speed rail.

The desire to stay informed is directly at odds with the need to not be constantly enraged.

Also, are you sure you want people to rate your comments?

I am pretty sure these ‘journalists’ were not always such a bootlicking sycophants.

… pundit janitors mopping up after the gop

“woke” is the new caravan.

No Kings: Americans standing in the way of bad history saying “Oh, Fuck No!”

Giving up is unforgivable.

Lick the third rail, it tastes like chocolate!

T R E 4 5 O N

We are aware of all internet traditions.

Weird. Rome has an American Pope and America has a Russian President.

This country desperately needs a functioning fourth estate.

GOP baffled that ‘we don’t care if you die’ is not a winning slogan.

Compromise? There is no middle ground between a firefighter and an arsonist.

I’m more christian than these people and i’m an atheist.

I swear, each month of 2025 will have its own history degree.

With all due respect and assumptions of good faith, please fuck off into the sun.

“Can i answer the question? No you can not!”

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You are here: Home / Anderson On Health Insurance / Cash cards and ACA plans?

Cash cards and ACA plans?

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I was getting my pre-professor start hair cut this afternoon. The place I go to plays an urban radio station for background noise. It is usually good background noise but an insurance broker ad really perked my interest. I am going to paraphrase it:

“Do you want free health insurance and a $500 cash card? If you are not on Medicare/Medicaid, earn under $50,000 and are under age 65, call XXX-867-5309 and our agents will check your zip code to see if you qualify for free health insurance and a cash card you can use to pay rent, or groceries or your cell bill…..”

This is an ACA pitch. The criteria of age, income and no other qualified coverage are the give-aways.

Zero premium plans are wicked common in the ACA with the ARPA/IRA enhanced subsidies. The two least expensive Silver plans are zero premium up to 150% Federal Poverty Level (~$22,000 for a single individual) and Bronze plans are typically zero premium well into the 200s and sometimes 300% FPL. Many insurers can plausibly offer zero premium Bronze plans. Typically we assume that marginal enrollees are picking only on price, but there is no price differentiation. These plans will not be substantially differentiated on benefits as the Max Out of Pockets Limits will be $7000 to $9000. Networks will differ but good networks will be attractive to individuals that risk adjust poorly so there is a strong incentive to race to the bottom. A cash card is effectively a price differentiation feature as it effectively makes a zero premium plan a negative premium plan if people know about it.

So I have a lot of questions.

The first one is how common are these cash cards?

If you have heard of an ad that sounds like a cash card for an ACA plan, can you put it into comments with a rough date and city or county and state.

This is interestingly weird. And on first thought, likely dumb.

Reader Interactions

12Comments

  1. 1.

    Frank Wilhoit

    My wife and I have a Medicare Advantage plan. She got it long ago because she got SSD; her experience with it has always been excellent, so I signed up when I turned 65. It is a 0-premium plan.

    This year, out of nowhere, they sent us each a $1000 prepaid Visa usable for vision and hearing services, any remaining balance forfeit at EOY. I must think that if all of their customers used these to the full, the insurer would suffer a serious loss. I’d bet — maybe not the whole nickel, but three cents — that they will not do this next year. We’ll see.

  4. 4.

    lollipopguild

    I have not heard the FREE cash card ad but I have heard ads(louisville,Ky) that promise FREE groceries! The ads I heard 2-3 years ago promised NO MONTHLY premium! The monthly premium would be added back into your Social Security check.

  6. 6.

    Yutsano

    XXX-867-5309

    Nice touch Mayhew.

    I haven’t heard anything like this, but the IRS brain in me is screaming “DANGER WILL ROBINSON!!!”. I’m not sure why, but something does sound hinky.

  7. 7.

    artem1s

    My brother and SIL both have some sort of extra cash card for groceries, etc on their Medicaid. Both are over 65 and started taking SS before they maxed out their payout (brother retired before 65, SIL started SS at 66-10mos). This is Ohio.

  8. 8.

    Anonymous At Work

    Are zero deductible plans “wicked common” outside the Boston area?
    *Third time today, in South Florida, someone used “wicked” that way to me…

  9. 9.

    TBone

    I am under 65 and on a zero premium plan chosen on our state’s (PA) exchange.  Have never been offered any such swag or even heard any ads for it.

    Are the insurance companies getting more cash from the government for each enrollee than they are expending paying claims? (Brian’s link indicates that’s the case).  Seems like a no brainer, incentive-wise.  But a really crappy way to run things.

    Instead of a gift card, why don’t they just cover vision and dental?

  11. 11.

    stacib

    I’m in Chicago, and I hear these ads all the time.  Additionally, since I’m turning 65 this year, I’m being bombarded with offers from insurers.  I’ll pay more attention and let you know.

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