Smart Benefits: Obamacare Extends Sign-Up for Exchanges... Again

Amy Gallagher, GoLocalProv Business/Health Expert

Smart Benefits: Obamacare Extends Sign-Up for Exchanges... Again

Good news for those who still need healthcare: they’ll have another chance to enroll in the federal exchanges if they had difficulty signing up, and they just need to check a box on the new application to indicate they had trouble trying to enroll in the first place.

Last week, the Obama Administration announced – for a fourth time – that it would extend the latest deadline from March 31st until at least mid-April to help those unable to enroll, and to help its own enrollment goal of 7 million. To date, the exchanges have enrolled 6 million people, according to the Administration's own estimates.

Extension Means Age – and Premiums – are Up

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But the announcement may not be all good news for consumers. Insurance experts say there may be room for concern, specifically, with regard to rates.

Premium rates are projected up front, and change slightly monthly. The consumers who enroll now versus when they first attempted to sign up three to four months ago are older. And since all the new plans are strictly age-based, even just an increase of a few months should alter rates. Insurers are already warning of double-digit increases for 2015, so the Administration’s extension may actually make insurance even more expensive.

The Uninsured are Still…Uninsured

Despite the Obama Administration’s mandate that all individuals purchase health coverage in 2014, or risk paying a penalty at tax time in 2015, the uninsured are not rushing to the exchanges. The penalties of $95 for individuals and $295 for families (or 1% of household income, whichever is higher) are a small price to pay compared to the cost of getting insured. So the majority of the 6 million the Administration claims are enrolled in the exchanges are those who previously had coverage, but whose plans were cancelled, possibly because a small employer stopped offering coverage.

The lack of uninsured enrollment may be due in part to the Internal Revenue Service’s lack of enforcement ability. That’s because, even if those who are penalized don't pay, the IRS is prohibited by the Affordable Care Act from enforcing criminal penalties or levying property to collect payment.

This is just one more way the healthcare reform law is working against itself, and doesn’t achieve the affordable care that it promises.

Amy Gallagher has over 21 years of healthcare industry experience guiding employers and employees. As Vice President at Cornerstone Group, she advises large employers on all aspects of healthcare reform, benefit solutions, cost-containment strategies and results-driven wellness programs. Amy speaks regularly on a variety of healthcare-related topics, and is often quoted by national publications on the subject matter. Locally, Amy is a member of SHRM-RI, the Rhode Island Business Group on Health, and the Rhode Island Business Healthcare Advisory Council.

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