Would you pay more money for the same services? Neither would over a million Americans with ObamaCare.
More than 1 million existing ObamaCare customers on the federal healthcare exchange (Healthcare.gov) switched to a different plan from the one they were in last year according to Health and Human Services. Likely because the cost of their current plan was increasing for 2015 and they sought to avoid being rolled over onto the same plan for higher costs.
Health and Human Services released more information this week on signups to ObamaCare following the extended open-enrollment period. Some 8.84 million people signed up for coverage through Healthcare.gov and another 2.8 million people though one of the 14 other state exchanges. That brings the total current signup number to 11.6 million people, but that number will fall. As we know, until they all pay their first month’s premiums and demonstrate immigration eligibility, these customers have just signed up – they’re not truly enrolled.
A little over half of Healthcare.gov customers (4.67 million) were new customers while the others re-enrolled automatically (1.96 million) or actively selected a plan (2.21 million).
Remember the week-long snow day that caused the Administration to extend open enrollment? Slightly more than 40,000 people took advantage to finish their unprocessed applications. Several states have planned special open enrollment periods during tax season or have yet to close open enrollment do the numbers are projected to rise a bit more. The Administration is patting itself on the back.
CNBC reports:
"The numbers are encouraging," said Health and Human Services Secretary Sylvia Burwell during a Google Hangout chat on Wednesday. "We're pleased with those numbers and pleased that more new enrollees came in."
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This year, the second season of Obamacare enrollment, was also the first time that most HealthCare.gov customers were automatically re-enrolled in their existing plans. Customers who were re-enrolled had the option of switching plans or dropping coverage altogether.
The Obama administration instituted the re-enrollment program to maintain its existing customer base, but the administration also repeatedly urged existing customers to shop around on the exchange for potentially better and less expensive coverage.
The federal subsidies that most Obamacare customers receive to help pay their monthly plan premiums are tied to the prices of certain benchmark plans. That relationship, and the rising prices of some plans, could leave customers who didn't shop for cheaper plans receiving less in subsidies at the same time their plan prices rose, meaning they would pay more personally for the plan.
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Andy Slavitt, principal deputy administrator of the Centers for Medicare and Medicaid Services, said the fact that more than half of the existing customers actively selected a plan for 2015 was an encouraging sign.
"Based on my experience looking at enrollment trends with employer-sponsored coverage and Medicare, it is clear that Marketplace customers are more active, engaged and eager to shop for the coverage that's right for them," Slavitt said, using the term "marketplace" to refer to the federal exchange.
It’s not surprising that ObamaCare enrollees were actively looking for new plans or shopping to see if they were still getting the best deal. As customers realize that the subsidies they qualified for last year will be lower this year due to their higher incomes or because costs have risen due to mix of young healthy versus older and sicker enrolled, they are going to shop around to get the best deal possible.
As we’ve also explained, enrollment is getting a big bump this year but it is likely attributable to Americans’ learning that they face a tax penalty for the first time if they can’t demonstrate they have health insurance coverage that meets with the approval of the federal government.
Healthcare coverage is important for every person to carry. There’s nothing better than knowing you can go to a doctor if you need to or can get help to pay for medical procedures should illness strike. However, ObamaCare is far from the best deal for Americans. That it’s only affordable because of tax-payer-funded subsidies, exposes how unaffordable it really is.
Real reform for our healthcare system would lower costs across the board which healthcare providers could pass on to customers, making the need for government sponsored plans unnecessary. Obamacare failed to deliver this reform. It’s time to explore other options that would transform our healthcare system and the innovative new ways that healthcare services can be delivered.