Blue Cross of Idaho will offer health insurance plans that do not meet Affordable Care Act requirements after a controversial executive order from Idaho Gov. Butch Otter.
The move by the insurer is a step further for Otter’s plan to bring cheaper options into the market. The governor says ACA plans are too expensive and more healthy people need to be drawn into the marketplace.
But his proposal is legally questionable and has drawn backlash from Democrats who say he is simply ignoring federal law.
The new Blue Cross plans, which still need to be formally approved by the state, appear to have cheaper premiums than ACA plans, but they also would charge people with pre-existing conditions more and have a limit of $1 million in claims per year.
Both of those features are not allowed under the ACA.
Blue Cross says the plans will “bring more choices and lower prices to consumers,” and “the current marketplace is not affordable for middle-class families.”
Congressional Democrats have been pressuring Secretary of Health and Human Services Alex Azar to step in to stop Idaho’s plan and enforce the law. It is not clear whether Azar will do so. (The Hill, Idaho Statesman)
