HHS Rules Exchange Customers Who Are “Unbanked” Can Use Prepaid Credit Cards To Pay Premiums

That’s the first time I have hear this term “unbanked” as I have heard “inadequately banked” and “under banked” before.  If this is not a sign of the times on how much control banks have, even the terminology!  Unbanked means you don’t have an account at a bank so to allow payments from those who either can’t afford it or just simply don’t want an account at a bank they can now use prepaid credit cards for premium payments. 

To hear the insurers complain about the “high fees” they have to pay on prepaid and debit cards is enough to make you choke with the billions in profits they make every year as well.  A lot of people are unbanked as they are members of credit unions.  BD

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In a victory for health insurance exchange customers with lower incomes, HHS issued a final rule (PDF) Wednesday that will allow individuals to pay their premiums with a prepaid debit card. The move allows individuals who do not have a bank account, called the “unbanked,” to pay premiums with a card they add money to that's issued by a credit card company.

The rule responds to widespread concerns that insurers would only take payment by check and credit card, while millions of lower-income Americans who will be buying coverage on the state insurance exchanges are unbanked because they can't afford the costs associated with checking accounts and credit cards. Some insurers had said they wanted to be able to set their own payment policies. They don't necessarily like credit or prepaid debit cards because the fees they have to pay are high.

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