The Center for Consumer Information & Insurance Oversight (CCIIO) has posted a mathematical tool that could reshape the U.S. health insurance market.
The CCIIO has released a proposed version of an actuarial value calculator that health insurers, regulators, brokers and others could use to measure how much actuarial value (AV) a health insurance plan provides.
PPACA would require many individuals to own a minimum level of coverage or else pay a penalty, and it would require most employers with at least 50 full-time equivalent employees to provide coverage or else pay a "shared responsibility" penalty.
A gold level plan would cover at least 90 percent of the actuarial value of an "essential health benefits" (EHB) package to be defined by regulators. The lowest value plan that could meet the PPACA minimum coverage standards, a bronze-level plan, would cover 60 percent of the actuarial value of the EHB package.