The US government has proposed to allow uninsured citizens to pay their insurance premium for health coverage using prepaid debit cards, a move that ensures lower-income Americans come under comprehensive health care insurance.
Starting from October 2013, health insurers will accept payments through prepaid debit cards. However, it will not be essential for them to accept automatic monthly payments from credit or debit cards, as reported by the Wall Street Journal.
The current move of the Obama administration aims to facilitate health care insurance for millions of lower-income Americans, who can also sign up for coverage even if they don’t own a checking account.
As per the norms laid down by the US Department of Health and Human Services (HHS), any underwriter participating in the new health-insurance exchange will have to accept payment from consumers in several different forms.
The proposed payment alternative comprises prepaid debit cards, cashier’s checks and money orders, as well as paper cheques and bank-account transfers.
The consumers have welcomed the new provision, although they expressed disappointment for not allowing automatic deductions from the card.