The current ACA landscape
As the Affordable Care Act (ACA) 2018 open enrollment is about to start come November, we continue to see many uncertainties in the market. We have explored the potential impact of rate increases on enrollment based on data available through the first half of 2017. Our previous blog post highlights a few key ACA considerations for the coming year and predicts what’s next for healthcare insurers.
We now wait with anticipation to see whether or not the ACA is indeed affordable. Our findings (recently cited in The Wall Street Journal) are that for many the rising premiums are simply too high to bear.
Premium rate increases impacting the subsidized and unsubsidized differently
When we reviewed statutory filing information on quarterly enrollment in the individual market and data from the Centers for Medicare and Medicaid Services for 2016 and 2017, we found that enrollment in ACA plans by members receiving subsidies actually rose over 5%. Meanwhile, enrollment among individuals not receiving subsidies declined by over 22%.
The ACA’s subsidized population are mostly protected from premium increases, but with another round of double digit rate increases in 2018 non-subsidized enrollment in the individual market is likely to continue to decline.