Affordable Care Act : more questions than answers ?
Dave
Villar , President Pacific Coast Benefits LLC ,
Dave Villar is the President of Pacific Coast Benefits LLC . He was a founder and partner of PDI Insurance Services . Dave is an active member of the National Association of Health Underwriters and a member of the Anthem Blue Cross Agent Advisory Council . He has specialized in Employee Benefit Planning for businesses since 1987 . To find out more about Pacific Coast Benefits and upcoming Healthcare Reform Seminars , visit pacbenins . com or call ( 408 ) 847-1000 .
N ow that the initial dust has settled on the first round of the Patient Protection and Affordable Care Act enrollment , and the “ who won and who lost ” discussions have played out on the Sunday morning talk show circuit , what are the actual results and what do the numbers mean ? More questions than answers have come to the surface since the closing of the Exchanges last month .
How many have actually enrolled ? The Obama administration tracks plans purchased on the federal and 14 state run exchanges to arrive at the 7.5 million figure publicly released last month . That figure does not separate Medicaid enrollment and enrollment in private plans within the Exchange Marketplaces .
How many are actually covered ? There is a distinct difference between “ enrolled ” and “ covered .” It has been widely reported that less than 10 % of those who enrolled in the federal and state run Exchanges have sent in a premium or have even been billed as I write this article . It is not known how many enrollees will actually pay their premium and for how long .
How many transitioned from a non- ACA compliant plan ? In late 2013 , millions of Americans received cancellation letters letting them know that their current plan wasn ’ t in compliance with the new mandates inside the Affordable Care Act . Those cancelled plans are not new health insurance purchasers but are counted as such in the 7.5 million new enrollment figure .
“ More questions than answers have come to the surface since the closing of the Exchanges last month .”
Where did the enrollment go ? According to the Kaiser Family Foundation , of those who enrolled in the state run and federal marketplaces , more than 3.5 million went directly into a Medicaid or a federally funded children ’ s program . Nearly half of the states voted to expand Medicaid as part of the Affordable Care Act .
Regardless of your politics , the initial enrollment period under the Affordable Care Act is nothing less than a glowing success for the Obama Administration . The goal of enrolling 6 million Americans was surpassed in spite of the glitches and problems at inception . What is yet to be determined is what will the numbers mean . How many young and health people enrolled ? How many enrollees will actually pay their premium and for how long ? How many of the new premium dollars are non-subsidized private funds ? Only time will tell if the individual mandate and initial enrollment period was a great success or failure .
What ’ s next ? Nearly 85 % of small businesses “ Early Renewed ” their health plans in December to avoid the 2014 ACA changes . These businesses will soon be receiving their renewal action letters sometime in late August or September . The impact of the new mandates , rating structure and taxes will be reflected in the new rates . New plan designs and strategies have emerged to help deal with the changes that lie ahead . Pacific Coast Benefits is here to help you navigate healthcare reform .
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