Original article
Covering bariatric surgery has minimal effect on insurance premium costs within the Affordable Care Act

https://doi.org/10.1016/j.soard.2016.03.011Get rights and content

Abstract

Background

Currently, of the 51 state health exchanges operating under the Affordable Care Act, only 23 include benchmark plans that cover bariatric surgery coverage. Bariatric surgery coverage is not considered an essential health benefit in 28 state exchanges, and this lack of coverage has a discriminatory and detrimental impact on millions of Americans participating in state exchanges that do not provide bariatric surgery coverage.

Objectives

We examined 3 state exchanges in which a portion of their plans provided coverage for bariatric surgery to determine if bariatric surgery coverage is correlated with premium costs.

Setting

State health exchanges; United States.

Methods

Data from the 2015 state exchange plans were analyzed using information from the Centers for Medicare & Medicaid Services’ Individual Market Landscape file and Benefits and Cost Sharing public use files.

Results

Only 3 states (Oklahoma, Oregon, and Virginia) in the analysis have 1 or more rating regions in which a portion of the plans cover bariatric surgery. In Oklahoma and Oregon, the average monthly premiums for all bronze, silver, and gold coverage levels are higher for plans covering bariatric surgery. Only 1 of these states included platinum plans that cover bariatric surgery. The average difference in premiums was between $1 to $45 higher in Oklahoma, and $18 to $32 higher in Oregon. Conversely, in Virginia, the average monthly premiums are between $2 and $21 lower for each level for plans covering bariatric surgery. Monthly premiums for plans covering versus not covering bariatric surgery ranged from 6% lower to 15% higher in the same geographic rating region.

Conclusions

Across all 3 states in the sample, the average monthly premiums do not differ consistently on the basis of whether the state exchange plans cover bariatric surgery.

Section snippets

Methods

Avalere, an advisory company focused on healthcare business strategy and public policy, provided summary statistics from their analysis of the 2015 Centers for Medicare & Medicaid Services’ Individual Market Landscape File and Plan Attributes Public Use File (Plan-PUF). These files present a variety of benefit design and plan information for exchange plans operating in a state with an exchange run by the federal government. To provide the summary statistics on “Bariatric Surgery,” Avalere

Bariatric surgery coverage

Overall, Oklahoma and Virginia provide greater access to bariatric surgery than Oregon. However, the majority of plans in each state do not cover bariatric surgery. In Oregon, only 10.5% of all plans cover bariatric surgery (46 of 436 plans). In Oklahoma, 36.7% of all plans cover bariatric surgery (73 of 199 plans). In Virginia, 44.6% of all plans cover bariatric surgery (41 of 92 plans).

Notably, none of the platinum plans in Oklahoma and Oregon cover bariatric surgery. In contrast, all

Discussion

Although bariatric surgery is the most effective intervention for morbid obesity and related co-morbidities, a fundamental issue that may hinder widespread utilization of bariatric surgery is that it may simply be considered too expensive in the face of current healthcare budget concerns. Insurance premiums are based on extensive actuarial analysis and reflect a multitude of factors, including expected cost of healthcare utilization by an expected enrolled population. Therefore, if utilization

Conclusions

In this study, we compared insurance premiums as a surrogate means of determining whether coverage of bariatric surgery is substantially more costly, and we found that plans covering bariatric surgery are not consistently more expensive. Bariatric surgery coverage does not appear to impose a significant economic burden and should be universally available for greater utilization in the war against obesity.

Disclosures

The authors have no commercial associations that might be a conflict of interest in relation to this article.

Acknowledgments

We would like to acknowledge Mike Morseon, Director of Healthcare, Economics, Policy and Reimbursement at Medtronic, for providing the data to the authors. The Medtronic Minimally Invasive Therapy Group sponsored the data research and analysis conducted by Avalere. Medtronic had no role in gathering the data, analyzing the data, or writing, editing, or approving the manuscript.

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