Question: Covered California standard plans do make it easier to compare benefits, but what about innovation? Health plans have shown they can develop innovative plan designs that appeal to consumers. Won’t they be stifled by ACA rules?
Answer: Consumers trying to buy health coverage today face a complex and confusing experience, not to mention the lack of transparency (read “fine print”). The standardization of benefit designs will force insurers to compete on cost and quality and customer service rather than consumer confusion. Much of what passed for health plan innovation in the past was designed to hit a price point while making it impossible to predict out-of-pocket costs.