Insurers: Sizeable Majority Has Paid Premiums
By Karen Pallarito
WEDNESDAY, May 7, 2014 (HealthDay News) -- A significant majority of Americans who signed up for health insurance under the Affordable Care Act have completed the final step of enrollment by paying their first month's premium, insurers told a Congressional committee on Wednesday.
Several of the nation's largest insurance companies said many people are successfully paying their premiums, with payment rates running between 70 percent and 90 percent, depending on the company and the state. Consumers who bought policies with later effective dates may not have paid yet because they haven't received a bill, the insurers said.
The U.S. House Energy and Commerce Subcommittee on Oversight and Investigations heard from several members of the insurance industry during a hearing on the Affordable Care Act's marketplaces and enrollments.
The Affordable Care Act is the controversial 2010 legislation that requires most Americans to have health insurance or pay a fine in the form of a tax penalty. Considered President Barack Obama's most visible domestic achievement, it is intended to bring insurance coverage to an estimated 30 million Americans with no coverage. It is also widely unpopular with Republican lawmakers.
Mark Pratt, senior vice president of state affairs at America's Health Insurance Plans, a Washington, D.C.-based insurance industry group, said there's still some uncertainty surrounding paid enrollments.
Some insurers "voluntarily decided to provide flexibility in the deadline by which exchange enrollees must pay their first month's premium," Pratt said in written testimony that was released before the start of the hearing. In some cases, enrollees created duplicative accounts or decided to terminate their online enrollments, adding to the difficulty of calculating accurate enrollment numbers and payment rates, he said.
The U.S. Department of Health and Human Services recently reported that 8 million Americans had signed up for health insurance on the federal and state online marketplaces during the 2014 open enrollment period.
The marketplaces, or exchanges, were created to help consumers enroll in private health plans offered under the Affordable Care Act, or Obamacare, as some people know it.