Already Using ACA Insurance? In 2015, It’s Automatic
If you signed up for health insurance coverage through the state and federal exchanges in 2014, you’ll automatically re-enroll next year. The U.S. Department of Health & Human Services (HHS) issued a proposal to help prevent disruptions in the marketplace and to troubleshoot and hopefully to reduce major drop-offs in the 8 million who are insured under private health plans through the exchanges.
Research has shown that the majority of people don’t take action when coverage policy lapses, so HHS is taking the initiative by doing it for them. Managing Director at Manatt Health Solutions Joel Ario (former director of the Office of Health Insurance Exchanges at HHS) said, “I think it’s critical that if somebody’s already gone through the process and gotten enrolled that they can stay in coverage in as many cases as possible.”
The benefits of automatic re-enrollment are:
- Reduces administrative burdens
- Makes it easier for insurance companies to hold on to customers
- Helps to bring stability into the program
- Solidifies market-share trends
Downside: Insurance plans that want to join the exchanges in 2015, or that are struggling to gain customers, will find it more difficult to gain customers during open enrollment if potential insurance customers automatically stay in the same plan.
You have 30 days to comment before HHS issues a final rule.