The Centers for Medicare and Medicaid Services (CMS) proposed a rule last week that will allow Health Insurance Marketplace customers enrolled in a 2014 plan to auto-enroll into a 2015 plan. Such an auto-enrollment process will make it easier for satisfied consumers to remain on their health plans.
“As we plan for open enrollment in year two and continue to build a sustainable long-term system, we are committed to simplifying the experience for consumers by allowing auto-enrollment,” said Sylvia Burwell, Secretary of the Department of Health and Human Services (HHS). “We are working to streamline the process for consumers wishing to remain in their current plan.”
HHS noted that nine out of 10 employees covered by the Federal Employment Health Benefits Program typically do not change plans from year to year, and are auto-enrolled into their current plans with updated premiums and benefits. Of course, the Federal program has been in existence for more than fifty years and is much more mature compared to the fledgling federal and state exchanges.
HHS says people who got their health insurance through HealthCare.gov in 2014 will get notices telling them to update their application information with income changes to update their tax credit eligibility.
“Consumers will receive information from their health insurance company about the premium and the amount they are eligible to save on their monthly bill close to the beginning of the open enrollment period, when they will be able to take action should they choose to do so,” it added.
Under the method proposed by federal health officials, the government will renew people in their current health plans as long as their incomes and covered family members are not changing, and as long as their plan will be offered through the federal marketplace for the 2015 plan year.
As long as you gave permission for each year's tax records to be checked by the government when you first applied for exchange coverage, the government will continue your premium subsidy arrangement into next year. Federal officials said that about 100,000 applicants did not provide such permission during the initial sign-up period; these consumers will need to reapply in 2015 or otherwise their plan will be renewed without any premium subsidy. If you are not sure if you gave the requisite permission, call the Marketplace on 1-800-318-2596.
Continuing people's current subsidies makes sense since Marketplace consumers already must report through Healthcare.gov any changes in their income within a month of the change, so that the premium subsidy calculation should be up-to-date.
Under the proposed rules, if a 2014 plan is no longer offered for 2015 those consumers would automatically be assigned to the most similar plan offered by the same insurer; or if that insurer is no longer offering any coverage the consumer would be enrolled in the most similar plan available from a different insurer in the consumer's service area.
It might make sense to shop coverage for 2015, in particular if the federal government auto-assigns a plan from a different company. Open enrollment for the 2015 plan year is scheduled to begin on November 15.
Always feel free to call us at AH Insurance Services, Inc. or send an email if you have any questions about your health plan.
Until next time,
Andrew Herman, President
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