HHS: Big boost in those seeking health coverage via ACA
WASHINGTON — The Biden administration announced Tuesday that it’s seeing a big uptick in the number of new customers buying private health insurance for 2023 from the Affordable Care Act’s marketplace.
Nearly 3.4 million people have signed up for coverage — an increase of 17% compared to the same time last year. The boost comes as the number of uninsured Americans this year reached a historic low of 8%.
“When you have a good product, people will buy it,” Health and Human Services Secretary Xavier Becerra said.
More than 665,000 new people have bought plans on the marketplace since open enrollment started Nov. 1.
HHS didn’t provide any demographic details about the new enrollees, but Becerra said he hopes the agency is reaching people in marginalized communities. Already this year, the marketplace saw huge gains in the number of Black, Latino and Native Americans who sought coverage.
The boost in enrollment is largely driven by generous subsidies — extended through 2025 in the Democrats’ $1.9 trillion coronavirus relief law — that keep monthly premium payments at $0 or just a few dollars for most people who sign up.
People can sign up for coverage on HealthCare. gov or through their state’s marketplace by Dec. 15 to get coverage that starts Jan. 1.
Experts will be watching to see if the strong start to the ACA’s open enrollment continues for the next few weeks.
“Only time will tell if this is truly outsized significant growth, or if it is people acting earlier in the open enrollment window,” said Massey Whorley, a principal at health consulting firm Avalere.
The record-low uninsured rate could also be disrupted next year, when the government is expected to declare an end to the COVID-19 pandemic and boot millions of Medicaid recipients off the coverage. That could drive more people to the federal marketplace in 2023, Whorley added.
“We’re going to be looking at a period of significant flux,” Whorley said. “All of this points to more and more people coming into the exchange.”