8.2 Million Applied for Coverage on Health Insurance Exchanges
More than seven out of 10 individuals who were previously enrolled in coverage through the marketplaces are renewing their insurance in the new year.
By - Open enrollment via the health insurance exchanges has seen a dramatic rise in popularity since the starting date of November 1, as more than 8.2 million consumers signed up for health coverage on HealthCare.gov or had their plans renewed, according to the Centers for Medicare & Medicaid Services (CMS).
Millions of individuals have purchased medical coverage plans via state-based health insurance marketplaces. The rise in the number of people who’ve enrolled in health insurance exchanges is almost at 2 million, as about 6.4 million people purchased coverage through the exchanges by the end of 2014.
The automatic renewal process as well as general high demand among consumers all led to the high numbers of enrollment through the health insurance exchanges. Since this data came out on December 22, it is expected that this data may change and increase. The open enrollment period for 2016 health coverage started on November 1 and lasts until January 31.
“Millions of Americans will start 2016 with the quality and affordable health coverage they want and need to keep their families healthy and financially secure,” Department of Health and Human Services Secretary Sylvia Burwell said in a public statement.
“We are encouraged by the strong start we experienced in the first half of Open Enrollment for 2016 coverage, and know we have ongoing work to do. We are focused on making sure families looking for coverage understand their options through the Marketplace, know about the financial assistance available, and have access to the support they need to enroll.”
The results show that more than seven out of 10 individuals who were previously enrolled in coverage through the marketplaces are renewing their insurance in the new year. While there are many individuals who purchase insurance through the call center, the majority visit HealthCare.gov to either enroll in new coverage or renew their plans.
Florida, Texas, Illinois, Georgia, and North Carolina have some of the highest number of individuals enrolling in either the federal or state health insurance exchanges. The Obama administration touts these exceptional outcomes as proof of the Affordable Care Act’s overall success.
CMS reports that there are both more new and more returning consumers enrolling in health plan coverage via the marketplaces. The results show that there are nearly twice as many consumers under the age of 35 enrolling for 2016 coverage as compared to those who purchased 2015 health plans. In fact, out of all who enrolled, those under the age of 35 composed a total of 41 percent of the consumer population by the end of the December 17 deadline.
At a news conference on December 18, President Barack Obama stated that about one-third more individuals signed up for medical coverage through the health insurance exchanges than compared to the numbers at the end of 2014.
The Obama administration projects that about 10 million people will be signed up for coverage through the health insurance marketplaces by the end of 2016. This may very well become reality, as the American population has until January 31 to sign up for a health plan.
“New customers are up one-third over last year,” President Obama said at the news conference. “And the more who sign up, the stronger the system becomes—and that’s good news for every American who no longer has to worry about being just one illness or accident away from financial hardship.”
The results show that more than two million people contacted the call center and more than 3.7 million went on the online marketplace between December 14 and 15. This led the federal government to extend the December 15 deadline for coverage in the new year by an additional two days.
Results fall below prior projections
However, earlier projections from the Obama administration expected much higher enrollment by 2016 and these results actually fall far below the expectations set up for the health insurance exchange and the Affordable Care Act several years ago.
Upon passage of the Affordable Care Act, the Congressional Budget Office predicted that more than 20 million people would have health insurance through the exchanges in 2016. The results are half that – much below prior expectations.
“I am still feeling concerned about low enrollment this year,” Caroline Pearson, a senior vice president at Avalere Health, told the Wall Street Journal. “Surely, the administration will hit its 10 million goal, but I am not sure enrollment will be a lot higher. I am not ready to call this a big success.”
The main reasons for those that purchase health plans on the exchanges is due to federal subsidies provided to low-income individuals. However, those that aren’t eligible for the subsidies are much less likely to enroll in a plan through the marketplaces.
New York’s health insurance marketplace
The Wall Street Journal also reported that the New York state-based health insurance marketplace has been very busy with calls and inquiries since open enrollment began. In early December, the customer service center received an average of 34,000 calls per day.
It is possible that a new program called the Essential Plan brought more interest from consumers, as it is meant for low-income individuals who aren’t eligible for Medicaid. The relative growth in the number of consumers on the health insurance exchanges is beneficial for payers.
“From my perspective, the last 30 days have been awesome,” said Alan Murray, president and chief executive of North Shore-LIJ CareConnect Insurance Co., a company that recently began offering health plans on the New York state exchange.
Image Credit: Centers for Medicare & Medicaid Services (CMS)
