Modest gain seen for Obama’s last health care sign-up season
WASHINGTON (AP) — Facing new challenges to a legacy law, the Obama administration on Wednesday set modest expectations for the president's final health care sign-up season. The biggest worry: rising premiums and dwindling choices.
Some 13.8 million people are expected to sign up for 2017 coverage, Health and Human Services Secretary Sylvia Burwell said. That would be an increase of a bit less than 9 percent from the 12.7 million who picked plans during open enrollment for this year.
This year is shaping up to be the most difficult signup season since HealthCare. gov launched in 2013 and the computer system froze up. But technology isn't the issue this time. Premiums are going up by double digits in many communities, and some major insurers have left the program, leaving consumers with fewer choices next year.
The administration says taxpayer-provided subsidies designed to rise alongside premiums will cushion most of the pocketbook impact. About 85 percent of customers get financial help. And for those policyholders whose insurer bailed out, the government is automatically matching them to another carrier's plan. It's up to the consumer whether or not to accept the match or keep shopping.
Officials say returning customers will notice a smoother, more informative website, making it easier to compare plans. Those who are satisfied with their current plans don't need to do anything; they'll be automatically renewed.
Finally, the administration is ramping up outreach, with a particular goal of enticing younger, healthier people to enroll. Expect pitches on social media platforms, email and television and radio as well as direct mail.
And the IRS will play a supporting role with a not-too-subtle nudge. Later this fall, the tax agency will send letters to people who did not get the minimum coverage required by the health care law. They'll be reminded that going without insurance risks a fine from the IRS, and the basic penalty is now $695.
Some independent analysts say even a 9 percent sign-up increase will be a heavy lift.
Burwell asserted that the health care law's insurance markets are strong and offer a product that people want and need. But she also acknowledged "that doesn't mean the road has been perfectly smooth," and the markets face "a transition period."
Burwell criticized Republicans for their unyielding opposition, saying "at nearly every turn, we've had to overcome partisan attempts to repeal and undermine the law through legislation and litigation." She called on Congress to cooperate on proposed fixes, such as a government-sponsored "public option" to promote competition.
Going into its fourth sign-up season, President Barack Obama's health care law has yet to achieve stability. Enrollment has been lower than initially projected; insurers say patients turned out to be sicker than expected, and a complex internal system to help stabilize premiums did not work as intended, partly because of actions by congressional Republicans.