ROBERT PEAR AND ABBY GOODNOUGH

NY TIMES

Some New Frustrations as Health Exchanges Open

Problems with Health Exchange

Health insurance marketplace opened for business Saturday

Long delays in accessing HealthCare.gov Difficulty with identity proofing, retrieving old passwords

and logging into account

Average time to complete applications was 90 minutes

Projected 13 million enrollment now down to 9.1 million

Two tasks Enrolling more of uninsured Renewing coverage for those that already had it

Problems with Renewing Coverage

Health Insurance prices set to increase up to 20% Center for Medicare and Medicaid Services estimates

prices rise 5% for average personNew data suggest that many of nearly 7 million

people who bought insurance will have to change to different health plans to avoid paying more An inconvenience for consumers

A 40 year old with cheapest midlevel or silver plan will pay $220 a month next year compared to $181 a month this year

Failure to re-enroll suggest even with subsidized premiums not worth the benefit they received

Problems with Renewing Coverage

Lower premiums to entice customers but much higher deductibles

Premiums increased much more sharply in places where fewer insurers were competing for customers Muscogee County: 74 plans available

52 plans deductibles>$2,500, 17 plans >$5000 In Charleston: 14 plans available

9 plans deductibles>$2,500, 3 plans>$5,000Caroline F. Pearson, vice president of Avalere

Health: “Next year will see another reshuffling. Eventually in a year or two, we will start to stabilize”

Number of Insurers State by State

Problems with Expanding Coverage

Enrollment events, tax penalties ($325 or 2% income), more emphasis on rural and minority groups

Coverage Gap in states not expanding Medicaid Income above current Medicaid eligibility but below

lower limit for Marketplace premium tax credits

Kaiser Family Foundation poll from October found 9/10 uninsured Americans had no idea when open enrollment starts, 38% had no intention of buying coverage

Further Challenges

Supreme Court agreed to hear a case about subsidies for the ACA

Republicans captured senateObama ratings low (40% approval)

ACA in the Future

25% more insurers participating next year

Leads to increase in supply which leads to:

•Increase in quantity •Decrease in Price

ACA will stabilize in future with more entry

Market Failure?

Lower supply due to uncertainty Insurers do not want to enter without knowing how

supreme court decision and congress handle ACA

Adverse selection Prices rise due to less entry Healthy people withdraw Prices rise even further

If subsidies are declared unconstitutional further exacerbate this problem.

Works Cited

http://www.nytimes.com/2014/11/15/us/politics/cost-of-coverage-under-affordable-care-act-to-increase-in-2015.html?ref=health

http://www.nytimes.com/2014/11/16/us/health-insurance-marketplace-opens.html?ref=health

http://www.nytimes.com/2014/11/15/us/health-care-act-enrollment.html?ref=health