White House: Shop and save at health care site
WASHINGTON — President Barack Obama’s administration on Thursday issued a plea to federal healthcare customers returning to the law’s health insurance marketplaces: Shop around if you want a better deal this year.
More than 70 percent of people currently enrolled in the Affordable Care Act health-insurance marketplace can find a 2015 health plan offering the same level of coverage at a cheaper premium, according to a report from the Department of Health and Human Services.
Almost 80 percent of current enrollees could find a health plan with a monthly premium lower than $100 after tax credits are applied, the department said.
“For some consumers — we think a large number of consumers — affordable premiums are going to be their number one factor,” said Andy Slavitt, principal deputy administrator of the Centers for Medicare and Medicaid Services, on a Thursday press call.
Meanwhile, premiums for a key coverage level, known as the benchmark plans, are increasing just 2 percent on average this year, according to the administration. But many customers who bought low-cost plans last year may receive an unexpected premium increase this year if they stick with their coverage.
The complicated dynamics of the benchmark plans highlight part of the reason why the Health and Human Services Department is urging existing enrollees to shop around this year. The benchmark plan is the second-lowest cost “silver” plan in each area, and it’s used to calculate how much of a tax credit a consumer can receive.
The benchmark plan may have changed in each area, officials said, which means the size of the tax credit for each plan could change in 2015. So it’s en- tirely possible that a person’s premium could stay the same price in 2015, but they could have to pay more because the benchmark plan in the area is cheaper.
A Kaiser Family Foundation analysis shows the year-to-year variation in these important benchmark plans. States such as Alaska (all counties) and Minnesota (nearly all) recorded more than 10 percent premium increases for the silver plan, for example. In Summit County, Colo., costs for the silver and gold plans decreased by 45 and 40 percent, respectively.
The administration’s report doesn’t address the potentially high out-of-pocket costs under the marketplace plans. The average deductible for individual bronze plans, which offer some of the cheapest premiums, increased from $5,081 in 2014 health plans to $5,181 in 2015, according to a Health Pocket analysis. The average silver plan comes with a $2,927 deductible in 2015, which is similar to 2014 levels, according to the group.
The Health and Human Services report comes almost three weeks into the start of the Affordable Care Act’s second enrollment period. Shoppers have until Feb. 15 to pick a health plan, but they only have until Dec. 15 to choose a plan for coverage starting Jan 1.
Previous research shows that people generally stick with their health insurance, even if it means passing up a better deal. But administration officials over the past few months have been urging consumers to go back to the improved enrollment website and shop around.
They’re also sending “highly targeted” communications to existing enrollees “when people are in situations where more information will help them,” Slavitt said.
Administration officials also stressed that the online renewal process for those who want to stay with their current coverage can usually be completed in less than a half-hour.
“Even those people, we strongly encourage to come back to the website, update their income information and make sure they’re maximizing their tax credits,” Slavitt said.