The open enrollment period begins in one week for 2018 marketplace coverage, but many consumers are confused about what to expect. No wonder!
The Trump administration has slashed advertising and outreach about open enrollment, so concrete consumer information is sparse. But there鈥檚 more than enough political rhetoric to make up for it, with regular partisan pronouncements that the marketplaces have collapsed and Obamacare is dead.
Further muddying the waters on 2018 coverage was the Trump administration鈥檚 decision this month to cut off government payments to fund subsidies some marketplace customers听receive to reduce their out-of-pocket costs,听and a subsequent congressional听proposal to restore them.
Though听details may change if Congress makes a move, here is key information that consumers can probably bank on. (鈥淧robably,鈥� because in this shifting environment, nothing is certain.)
- Open enrollment in the 39 states using the federal marketplace starts Nov. 1 and continues until Dec. 15 for coverage that starts Jan. 1, 2018. That鈥檚 considerably shorter than past years. (In some states that run their own insurance exchange, people can sign up through January for coverage.) If you miss the Dec. 15 deadline and your current plan won鈥檛 be offered next year, you may qualify for a special enrollment period that would give you more time to get coverage. More on that below.
- Despite the chaos in the marketplace,听people who qualify for tax credits to help pay for their premiums or cost-sharing reduction subsidies to lower their deductibles and copayments will get them. And,听in听some cases, pricing may be turned on its head 鈥� plans providing higher levels of coverage may be more affordable than less听generous plans.
- There will be at least one insurer offering marketplace coverage in every sign-up area.
- Plans sold on the marketplaces will still offer comprehensive coverage and no one will be turned down or charged more because they have a preexisting medical condition.
- If you don鈥檛 have insurance next year, you鈥檒l owe a fine unless you meet specific guidelines to be excused.
Shopping for health insurance is about as entertaining as picking dryer lint off your clothes, but this year it鈥檚听essential to sit down at your computer or work in person with a navigator (if you can find one; federal funding for these health insurance helpers has been trimmed, too) and review the plans offered in your area.
Going For Gold听
It鈥檚 always important to check your plan details to see if the costs, benefits or providers have changed听and compare them to other plans. This year, failing to do so could mean you鈥檒l miss out on significant opportunities to get more bang for your premium buck.
Because of a wrinkle in premium pricing this year, some consumers听may be able to buy gold plans, one of the most comprehensive offered on the marketplaces, for听a lower premium than that听of a less generous silver plan. For the same reason, consumers who buy a bronze plan, whose coverage is less generous than a silver plan, may owe no premium at all.
Marketplace plans are grouped into four levels of coverage. Bronze plans pay 60 percent of covered medical expenses on average, silver plans pay 70 percent, gold picks up 80 percent, and platinum plans pay 90 percent.
The health law provides two types of subsidies to help lower-income consumers buying coverage on the marketplace. Cost-sharing reduction (CSR) subsidies are paid by the federal government to insurers to shrink deductibles and copayments for people with incomes up to 250 percent of the federal poverty level (about $30,000 for one person) but only if they buy a silver plan.
Also, people with incomes up to 400 percent of poverty (about $48,000 for an individual) can qualify for听tax credits to help pay for premiums.听The amount of the premium subsidy is听based on听their income and the cost of a low-priced听silver plan.
Earlier this month, President Donald Trump cut off those federal payments to insurers.听Senators have introduced a bipartisan听bill that would restore the听payments, among other things, but its likelihood of passage is unclear.
Recognizing that they might be on the hook financially if the administration cut off payments, many insurers already incorporated the cost of those subsidies into their premiums for 2018 marketplace plans. Further, on their own or at the direction of state insurance regulators, many insurers limited the CSR price increases to the silver plans听to which the premium subsidies are tied.
But听boosting silver premiums听may also mean听that consumers听get larger premium tax credits.
Even though premium tax credits are听set according听to a silver plan, they can be used for any听plan. So, shoppers who听qualify for those subsidies may find that while silver plan premiums are relatively expensive this year, bronze and gold plans are relatively cheap, because consumers鈥櫶齦arger premium tax credits will make those plans more affordable.
鈥淧remiums for silver plans are higher, but not for gold or bronze,鈥� said Caroline Pearson, a senior vice president at Avalere Health, a consulting firm. 鈥淧remiums for gold and bronze plans are unusually cheap, so they might be a better value.鈥澨�听
To illustrate the pricing anomaly, the Kaiser Family Foundation used the example of a 30-year-old consumer in Sacramento, Calif., who receives a $295 monthly premium tax credit. After applying the tax credit, he would pay $130 for a silver plan with a $425 premium. But he would pay less, just $114, for a more generous gold plan with a $409 premium.听(Kaiser Health News is an editorially independent program of the foundation.)
In addition, people who don鈥檛 qualify for subsidies may find better deals off the marketplace this year, experts said, depending on whether the state encouraged insurers to load the CSR increases into only marketplace plans.
Auto-Enrollment听
If you don鈥檛 take that step to review plans and update your income and other personal information, your insurer or the marketplace may automatically re-enroll you in your 2017听plan听or another one that is similar in price and coverage. About two-thirds of people earlier this fall said they would like to stick with the same plan if it鈥檚 available.
That may seem like a simple solution, but remember: If premiums have changed, it could affect how much you owe, and a new plan may have different benefits or a different network of doctors, hospitals and other providers. You need to check out your options.
Shorter Enrollment Window
If you live in a state that uses the federal marketplace, open enrollment ends Dec. 15, about six weeks earlier than last year.听That reality coupled with the fact that in-person help will be tougher to find means that people should start looking into plans sooner rather than later. States that run their own marketplaces may allow consumers to enroll through the end of January.
鈥淒on鈥檛 wait,鈥� said Sarah Lueck, a senior policy analyst at the Center on Budget and Policy Priorities. Her advice for consumers: 鈥淕o and look as soon as you can.鈥�
However, some consumers who miss the Dec. 15 enrollment deadline may have another shot at signing up, experts say. If your current plan is being discontinued,听you may qualify for a special enrollment period (SEP) because it鈥檚 considered a听loss of coverage, said Sandy Ahn, an associate research professor at Georgetown University鈥檚 Center on Health Insurance Reforms. Consumers in that situation after their coverage ends on Dec. 31 to enroll in a new plan.
鈥淚f you didn鈥檛 know that open enrollment was cut short this year, you might need that SEP,鈥� Ahn said. Consumers should hang on to their insurer letter that tells them they鈥檙e losing their coverage under their current plan to document their eligibility.
The Centers for Medicare & Medicaid Services didn鈥檛 respond for a request for comment about the eligibility for a SEP in these circumstances.
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