Obama administration officials said last month that about 2.5 million new customers had bought insurance through HealthCare.gov since open enrollment began on Nov. 1. The number of new enrollees is 29% higher than last year at this time, suggesting that the threat of a larger penalty may be motivating more people to get covered.
But plenty of healthy holdouts remain, and their resistance helps explain why insurers are worried about the financial viability of the exchanges over time. People who earn too much to qualify for federal subsidies that defray the cost of coverage may be most likely to opt out.
A group of health policy analysts have collaborated on a set of proposals for replacing the Affordable Care Act (ACA) and also reforming other major portions of health care delivery, such as the tax treatment of employer-sponsored health insurance, Medicaid, Medicare, and Health Savings Accounts. Because so much attention has been paid to the repeal of the ACA by those who have opposed it, we believe it is important to focus on a serious proposal that could both replace this law and provide additional measures of reform, especially to the health care entitlement programs.
We believe our reform agenda represents such a proposal. Furthermore, none of us regards the pre-ACA health care system as an acceptable alternative.
Only 7% of the uninsured correctly identify this as the deadline to enroll in coverage and 20% say they have been contacted by someone about signing up for coverage. When asked why they have not purchased health insurance this year, nearly half of the uninsured (46%) say they have tried to get coverage but that it was too expensive.
Consumers anxious to beat the midnight Tuesday deadline to enroll on the federal insurance exchange overwhelmed call center lines Monday, federal officials said. Some people were being asked to leave their names so they could be called back after the deadline to be enrolled. The Centers for Medicare and Medicaid Services said they would still be able to have coverage effective Jan. 1 if they left their contact information before the deadline.
HealthSpan, the insurance arm of Catholic health system Mercy Health, is getting rid of its medical group and halting sales of ObamaCare policies just two years after acquiring Kaiser Permanente’s Ohio subsidiary. Spokesman Chuck Heald said HealthSpan will stop selling individual and small-group health plans on the ObamaCare exchanges to focus more on Medicare and employer plans. HealthSpan jacked up premium rates for 2016 individual and small-group plans anywhere from 9% to 32% to account for the sicker-than-expected exchange population.
UnitedHealth Group won’t pay brokers commissions on sales of individual health plans in most states where it participates in Obamacare exchanges, a move that will likely discourage market demand for its plans in those states. The News & Observer reports the Minnetonka-based insurance giant notified North Carolina brokers of the policy change Friday, not long after it announced plans to evaluate whether it would continue to serve the public exchange markets after 2016.
About 4,500 Medical University of South Carolina patients currently covered by Consumers’ Choice Health Plan need to pick a new policy by Tuesday to remain insured on Jan. 1. Medical University Hospital CEO Pat Cawley told the MUSC Board of Trustees on Thursday that the announcement created “an administrative nightmare.”
Only 35% of 67,000 Consumers’ Choice customers across the state have selected a new plan so far.
The lone health insurance cooperative to make money last year on the ObamaCare insurance exchanges is now losing millions and suspending individual enrollment for 2016. Maine’s Community Health Options lost more than $17 million in the first nine months of this year, after making $10.9 million in the same period last year. A spokesman said higher-than-expected medical costs have hurt the co-op. An Associated Press review of financial statements from 10 of the 11 surviving co-ops shows that they lost, on average, more than $21 million in the first nine months of this year.
Instead of more federal regulation and subsidies, what U.S. health care needs is adoption of market principles, starting with broad empowerment of the patient-consumer. The proposals advanced in this volume would replace many counterproductive and outdated federal policies with practical, market-based reforms that aim to provide all Americans with access to high-quality health care at affordable prices.
Community Health Options, a not-for-profit co-op insurance company based in Maine that also sells health plans in New Hampshire, will limit individual enrollments later this month because of “higher-than-expected claims costs.”
It’s an inauspicious sign for the company, which was one of the few successful co-ops created by the Affordable Care Act. Twelve of the ACA’s 23 co-ops have folded or are in the process of closing down, all of which occurred this year.