Experts question whether the plans exempt policyholders from the ACA's tax penalty for not having "qualified" coverage, defined as a policy from an employer, a government program or a licensed product purchased on the individual market.
The penalty for tax year 2017 is the greater of a flat fee or a percentage of income. The annual total could range from as little as $695 for an individual to as much as $3,264 for a family.
Trump issued an executive order in October designed to loosen insurance restrictions on lower-cost, alternative forms of coverage, but the administration has not signaled its view on what would be deemed qualified coverage.
Responding to questions from KHN, officials from Apex and Xpress said their plans are designed to be affordable, not to mimic ACA health plans.
"If that is what we are expected to do, just deliver what every Marketplace plan or carriers do, provide a Bronze, Silver Plan, etc. it would not solve the problem in addressing a benefit plan that is affordable," the companies said in a joint email on Nov. 14. "Individuals are not required to have an insurance plan, but a plan that meets minimum essential coverage, the required preventive care services."
Bemoras, in a separate interview, said his company has been selling a version of the plan to employers since 2015.
"As we see the political environment moving and wavering and not understanding what needs to be done, the individual market became extremely attractive to us," Bemoras said.
Still, experts who reviewed the plans for KHN said policies sold to individuals must cover 10 broad categories of health care to qualify as ACA-compliant, including hospitalization and emergency room care, and cannot set annual or lifetime limits.
The Xpress/Apex programs do set limits, paying zero to $2,500 annually toward hospital care. Doctor visits are covered for a $20 copayment, but coverage is limited to three per year. Lab tests are limited to five services annually. To get those prices, patients have to use a physician or facility in the PHCS network, which says it has 900,000 providers nationwide. Low-cost generics are covered for as little as a $1 copay, but the amount patients pay rises sharply for more expensive drugs.
"I'm very skeptical," said attorney Alden J. Bianchi of Mintz Levin, who advises firms on employee benefits. "That would be hard (to do) because in the individual market, you have to cover all the essential health benefits."