Helping Americans Keep the Coverage They Have and Promoting Transparency

over 165 million Americans get their health insurance through the workplace. For most, that coverage provides comprehensive benefits and affordable premiums.

Unfortunately, some workers don’t have this kind of quality coverage. Some employers – particularly those who hire lower wage or part time employees – offer their employees only limited benefit plans, also known as “mini-med” plans, with high deductibles and low annual dollar limits on their benefits.

In 2014, American workers will have access to a choice of affordable, comprehensive health insurance plans that cannot use annual limits to cap their benefits. Mini-med plans will become a thing of the past. Until then, however, we need to make sure that people can maintain their best available insurance option.

The health law requires insurers to phase out the use of annual dollar limits on benefits. Mini-med plans can’t meet the new limits – starting at $750,000 in 2011 – without dramatically increasing their premiums. The high cost would make coverage unaffordable for many workers and force them to go uninsured.

To allow individuals with mini-med plans to keep their coverage, the law allows plan sponsors (usually employers) to apply for a one-year waiver of the annual limit rule. To receive a waiver, the plan must show that a waiver is necessary to prevent either a significant increase in premiums or decrease in access to coverage.

As of today, a total of 733 waivers have been granted. The number of enrollees in plans with annual limits waivers is 2.1 million, representing only about 1 percent of all Americans who have private health insurance today.

You can see a list of the businesses, insurance plans and employers that have received a waiver by clicking here. This includes a large number of plans that applied for waivers in December in advance of the new year. However, while the number of approved waivers increased by more than 200 percent, the total number of enrollees in plans receiving waivers has increased by only 48 percent since the previous posting. These waivers are temporary and only apply to the annual limit provision in the law – plans that receive these waivers must still comply with other new consumer protections created by the Affordable Care Act.

We are committed to making the waiver process transparent to the public and to make sure workers with mini-med plans are informed about the limited nature of their coverage. For example, we have required plans that receive waivers to inform their enrollees that their coverage is limited. HHS also helps to ensure transparency by posting a list of the plans that have been granted waivers, so stakeholders understand how they are affected.

Annual limits waivers are a stop gap measure to 2014 when annual dollar limits will be prohibited, mini-med plans will no longer be necessary and consumers will have new affordable health care choices. We’re committed to implementing the Affordable Care Act efficiently and effectively, and building a bridge to 2014 when Americans will have access to affordable, quality health care options.