Medicare Trustees Report: Slow cost growth overall but some may see a 52% increase in Medicare Part B Premium

In July, the Medicare Trustees projected that the trust fund financing Medicare’s hospital insurance coverage will remain solvent until 2030.  Click here for the 7-22-2015 Press Release.

“Growth in per-Medicare enrollee costs continues to be historically low even as the economy continues to rebound.  While this is good news, we cannot be complacent as the number of Medicare beneficiaries continues to grow,” said Andy Slavitt, Acting Administrator of the Centers for Medicare & Medicaid Services (CMS).  “That’s why we must continue to transform our health care system into one that delivers better care and spends our dollars in a smarter way for beneficiaries so Medicare can continue to meet the needs of our beneficiaries for the next 50 years and beyond."

While per-enrollee Medicare spending growth has been low, a looming concern is a potential 52% jump in the Medicare Part B premium impacting 2016 Medicare beneficiaries in any of the following groups:

* New enrollees who start Medicare Part B on or after 1/1/2016

* Enrollees who are billed directly for their Medicare Part B premium (i.e., monthly premium is NOT deducted from Social Security benefits)

* Enrollees who pay an income-related higher premium

Decisions about premium changes will be made in October, so the premium hike that would impact approximately 30% of Medicare beneficiaries is not final.

Why only 30% Of Medicare beneficiaries impacted, not everyone?

People who have claimed Social Security benefits and are on Medicare must, by law, have their Part B premiums withheld from their Social Security payments.  Except for those paying an income-related higher premium, these Medicare beneficiaries are protected by a “hold harmless” provision mandating that their net Social Security benefits (gross monthly benefit less the Medicare Part B premium) cannot decline from one year to the next.  Normally, this is not an issue because in most years Social Security benefits are increased with a yearly cost of living adjustment (COLA).

What happens when the COLA is zero, as currently is forecast for 2016?  As noted above, Medicare beneficiaries having the standard Part B premium deducted from Social Security benefits cannot be required to pay any premium increases.  Yet, Medicare costs are increasing; and by law Medicare must collect 25% of Part B expenses from beneficiaries in the form of monthly premiums. Since Medicare cannot increase premiums on the 70% of beneficiaries who are held harmless, in order to achieve the targeted 25% ratio it must collect more from those beneficiaries who are not held harmless.

The Medicare Trustees projected that Medicare beneficiaries not protected by the hold harmless provision would pay 52% more in Part B premiums next year.  Those not held harmless include new enrollees to Medicare in 2016, people with modified adjusted gross incomes (MAGI) above $85,000 ($170,000 on joint tax returns) and those who haven’t yet begun receiving Social Security benefits.  Beneficiaries with low-incomes who have their premiums paid by their state are also not held harmless, so state budgets also would be impacted next year.

For those not subjected to the income-related higher premium, the 2016 Medicare Part premium would be $159.30 (52% increase compared to $104.90 premium in 2015).  Beneficiaries in the higher income premium groups would have similar percentage hikes, from a range of $146.90 to $335.70 a month in 2015 to a range of $223 to $509.80 in 2016.

Some Medicare beneficiaries could see an even higher percentage increase in 2016 Part B premium; for example a current enrollee who falls into a higher income premium group for the first time.  Assuming the first tier of higher premium applies, and for the first time in 2016, the Medicare Part B premium would more than double in 2016 (from $104.90 in 2015 up to $223 in 2016).

Medicare officials say they will do what they can to reduce these increases while still honoring their funding obligations to support Medicare Part B expenses.  In the meantime, the only strategy to avoid these increases is for beneficiaries paying their premiums directly to Social Security to sign up for Social Security before the end of 2015 and begin having their Part B premiums automatically deducted from their Social Security payments.

Some people who have been delaying Medicare Part B past age 65 due to presence of other health insurance coverage may be planning to enroll in Medicare Part B on 1/1/2016 due to retirement or other reasons.  These folks might want to consider contacting Social Security to request that their Medicare Part B coverage be put into effect on 12/1/2015.  Keep in mind that this strategy to avoid the premium increase would work only when Social Security benefits are being collected, and it may not be worthwhile to trigger Social Security benefits solely for purposes of avoiding a higher 2016 Part B premium.

What happens in the future when COLAs resume?

Let's assume that there is no COLA increase in 2016 on Social Security benefits.  If in 2017 there is also no COLA increase to benefits, then people held harmless in 2016 would continue to be held harmless in 2017.  But these "savings" are unlikely to continue for life.

Once Social Security COLAs resume, Medicare Part B premiums will trend towards "normal" benefits with consistent premiums for those not collecting and those collecting monthly Social Security benefits.  Beneficiaries held harmless in 2016 would face premium increases when COLAs resume, and beneficiaries not held harmless might see a decrease.  It seems probable that after a few years, all beneficiaries without any income-based premium surcharge will once again be paying the same Part B premium.

As a final note, the Medicare Trustees report projected the annual deductible for Medicare Part B also will increase by 52% (from $147 to $223).  Beneficiaries on Original Medicare supplemented by either Medigap Plan C or Medigap Plan F would not be impacted, since these two Medigap plans pay the annual Part B deductible.  Beneficiaries with Part C Medicare Advantage (MA) plans likely would not see a direct impact since MA health plans set their own deductibles, and most MA plans do not charge the enrollee any Part B deductible.

Until next time,


Andrew Herman
President

Supreme Court Saves ObamaCare Again

In a 6-3 decision, the Supreme Court saved the controversial Affordable Care Act (ACA) law commonly known as ObamaCare.  Today's ruling holds that the ACA authorized federal tax credits for eligible insureds - not only in the states that established their own exchanges - but also in the 34 states that have been using the federal marketplace that is accessed online at www.healthcare.gov.

The State of Florida leads the nation in ACA enrollments, with approximately 1.5 million 2015 enrollments.  Florida uses the federal marketplace and is one of 21 states that have not chosen to expand the Medicad program (that aspect of ObamaCare was left up to the states to decide in the earlier Supreme Court decision that ruled the ACA is constitutional).  The overwhelming majority of ACA enrollees on the federal marketplace receive premium subsidies (in many cases nearly the entire health insurance premium), so there was a lot at stake in today's ruling.

Chief Justice John Roberts issued the majority ruling, and once again was an unlikely hero in saving Obama's signature legislative achievement.  He was joined by Justice Anthony Kennedy, who is often the High Court's swing vote, and the four liberal Justices Stephen Breyer, Ruth Bader Ginsberg, Elena Kagan and Sonia Sotomayor.  Justice Antonin Scalia wrote the dissenting opinion and was joined by Justices Samuel Alito and Clarence Thomas.

Justice Scalia dissented in forceful terms, even going so far as to give the ObamaCare program a new name:  SCOTUScare.

Until next time,

Andrew Herman

Reporting From the Front Lines - 2015 ACA Open Enrollment

By the Numbers - Open Enrollment for 2015 Affordable Care Act (ACA) Health Insurance

Earlier today, I joined on the conference call with U.S. Department of Health and Human Services (HHS) Secretary Sylvia Burwell.   After graciously thanking the audience for contributing to the success of this year's Open Enrollment Period, Ms. Burwell provided the following ACA and Health Insurance Marketplace updates:

* 11.4 Million Americans selected or were auto-enrolled into a 2015 ACA plan

* Of the 11.4 Million, 8.6 Million enrolled through the Federal Marketplace and 2.8 Million through State-based Exchanges

* Florida came in first-place for Federal Marketplace enrollments, with 1.6 Million Americans enrolling in a 2015 plan so far

The figures above reflect all consumers completing an application and selecting a health plan, without regard to whether the premium was paid.  Ms. Burwell stated that the federal government's goal for 2015 open enrollment had been 9.1 Million actually paying the plan premium, and it appears that the 2015 goal is likely to be met or exceeded.

Ms. Burwell noted on the call that the 10 Million drop in uninsured Americans from 2013 to 2014 is the largest drop in the uninsured since the 1970s.

Below are additional numbers released on February 11th by HHS:

There has been an increase in coverage choices:

25%              The increase in issuers competing for business in the 2015 Marketplace as compared to last year.

40                 The average number of plans consumers can choose from this year.

It has become easier to navigate the web site or seek help in another language:

76 to 16       The reduction in the number of screens on HealthCare.gov that typical consumers need to click through when completing an application online this year as compared to last year.

200+              Languages in which consumer assistance is provided at the Marketplace Call Center.

60%               Percentage of consumers who visited CuidadodeSalud.gov through a mobile device or tablet.

Help for folks to sign up without the need for their own Internet, cell phone or tablet:

23,000+        Certified application counselors, navigators and in-person assisters on the ground in communities across the nation working to educate and enroll individuals in Marketplace coverage.

74,000+       Agents and brokers on the ground in communities across the nation working to educate and enroll individuals in Marketplace coverage.

Another government date soon approaching is the 2014 Federal Income Tax payment deadline.  Many folks may be interested to know about these just released income tax related numbers:

$268             The average monthly tax credit for people who qualify for financial assistance in the 37 states using Healthcare.gov through January 30.

87%              The percentage of Marketplace consumers who qualified for tax credits to make their monthly premiums more affordable in the first two months of open enrollment.

Until next time,

Andrew Herman

Certified Agent on the Marketplace

Do I Have to Pay an ACA Tax Penalty for 2014?

Were you covered under Affordable Care Act (ACA) or Grandfathered Health Insurance during 2014?  If not, you may have to make an individual shared responsibility payment (SRP) on your 2014 federal tax return.

The annual penalty for not having health insurance in 2014 is $95 or 1% of your 2014 income, whichever is greater.  This amount is for each person - if you have a family, you must pay this amount for you, for your spouse, and for each child ($47.50 per child under 18), up to the maximum annual penalty shown in the chart below. The penalty amount increases in future years:

From Kaiser Health News

The penalty amount each year is capped at the national average premium for a Bronze-level plan.  For 2014, the annual national average premium is $2,448 per individual ($204/month per individual) or $12,240 for a family of five or more members ($1,020/month).

If you are uninsured for a portion of a year, 1/12 of the yearly penalty applies to each month that you are uninsured.  If you are uninsured for less than three months of the year, you do not have to make an SRP.

How does the federal government count income for purposes of calculating the SRP?

- Start with all gross income reported on your 2014 return that is not exempt from tax

- Include any income from the sale of your main home in 2014

- Include only the taxable part of any social security benefits

- Include any gains (but not losses) from Form 8949 or Schedules C, D or F

- Then subtract the filing threshold amount (see table below for your filing status)

 

For example, a single person under age 65 with 2014 taxable income of $100,000 would subtract $10,150 to arrive at an adjusted income amount of $89,850.  Without any health insurance in place during 2014, that person must pay an SRP of $898.50 (this amount equals the greater of $95 or $89,850 x 1%).

Click here for a handy ACA Tax Penalty Calculator

Who qualifies for an exemption from the SRP?

If you did not have minimum essential coverage in 2014 required by ACA, review the following list to see if you can qualify for an exemption from the SRP:

• You’re uninsured for only 1 or 2 consecutive months of the year
• You enrolled in a health plan that started no later than May 1, 2014, but were uninsured any number of months before that in 2014
• The lowest-priced coverage available to you, through either an individual or job-based plan, would cost more than 8% of your household income
• You don’t have to file a tax return because your income is below the level that requires you to
• You’re a member of a federally recognized tribe or eligible for services through an Indian Health Services provider
• You’re a member of a recognized health care sharing ministry
• You’re a member of a recognized religious sect with religious objections to insurance, including Social Security and Medicare
• You’re incarcerated (serving a term in prison or jail), and not being held pending disposition of charges
• You’re not lawfully present in the U.S.
• You’re a U.S. citizen living abroad, or one of certain types of non-citizens
• You qualify for a hardship exemption.

To learn more about how to apply for any of the exemptions shown above, visit the official government website at the following link:

https://www.healthcare.gov/fees-exemptions/exemptions-from-the-fee/

Until next time,

Andrew Herman

ObamaCare By The Numbers

Obamacare: What Are the Numbers?

One year into the implementation of many of the Affordable Care Act’s key features- including Medicaid expansion and the opening of the health insurance exchanges, numbers are coming in regarding new insurance enrollments in the past year. The numbers are based off of two surveys reported in September, 2014: the Centers for Disease Control National Health Interview Survey and the Census Bureau’s Current Population Survey. The Current Population Survey only gave the estimated percentage of uninsured people in 2013 (13.4% or 42 million Americans). On the other hand, The National Health Interview Survey gave the estimated number of uninsured people for both 2013 and 2014 and compared the two figures. A preliminary report with figures from January to March 2014 estimates that in 2014 there are 3.8 million fewer uninsured people than in 2013.

However, more concrete numbers were provided by the Heritage Foundation on October 22. The Heritage Foundation found that insurance enrollment in individual market plans increased by 6,254,564 individuals and that Medicaid enrollment increased by 6,072,651 individuals. This seemingly large increase in insurance coverage is marked, but still not up to the government’s predictions for 2014. The increase in insurance coverage, however, is not as great as first glance indicates. Although there was an increased enrollment in individual market plans of over six million individuals (both on and off exchanges), there was simultaneously a decline of 3,788,978 individuals enrolled in employer-sponsored group plans. Hence the net individual market plan enrollment is only 2,465,586 individuals.

1- The changing number of uninsured in 2014

It is interesting to note that there was an enormous increase in the number of new Medicaid enrollments. 26 states and Washington, D.C. have chosen to implement expanded Medicaid programs in 2014. Of over six million new Medicaid enrollments in 2014, 94% occurred in states that implemented Medicaid expansion. It will be interesting to see if this trend continues. In 2015, Pennsylvania will implement expanded Medicaid, opening it up to those making up to 138% of the Federal Poverty Level. Perhaps in future years, more states will join the bandwagon and expand their Medicaid programs and begin to reduce inequality.

For reduction of inequality is what the Affordable Care Act is- theoretically- all about. The enrollment patterns in 2014 are reflective of that goal. The Medicaid expansion in 26 states and Washington, D.C. has evidently allowed many insurance who could not afford private insurance plans. Many of the new enrollments are of people who are traditionally underprivileged- those living in rural areas; young people (defined as 18-34); and certain racial groups, such as black and Hispanic individuals; and women.

2- Uninsured rates in 2014 by County

Moving forward, it will be interesting to see whether the number of uninsured will continue to decline, and whether more states will expand Medicaid. As the Open Enrollment Period for individual market plans will begin on November 15, there is concern about technological issues such as occurred last year. There is also concern that people may not enroll for health insurance due to higher premiums. In light of 2014’s only moderate success in increased enrollment and the deterrents from obtaining health insurance, the Department of Health and Human Services (HHS) has modified its 2015 predictions. Abandoning the 13 million figure, the HHS now predicts that 9-9.9 million will newly obtain health insurance in 2015.

Until next time,

Andrew Herman

AH Insurance Services, Inc.

2015 ObamaCare Open Enrollment is Here - What Are the Enrollment Deadlines?

The Open Enrollment period for 2015 individual health plans runs from November 15, 2014 to February 15, 2015.

If you have not enrolled in 2015 coverage by February 15, you generally cannot buy Marketplace health coverage for 2015 unless you qualify for a Special Enrollment Period.

If you are enrolled in a 2014 Marketplace plan, your coverage ends December 31, 2014. This is true no matter when your 2014 coverage began.

To continue health coverage in 2015, you can renew your current health plan or choose a new plan through the Marketplace until February 15, 2015.

To learn more, click here to contact us or visit the federal healthcare.gov site.

Until next time,

Andrew Herman, President
AH Insurance Services, Inc.

2015 Medicare Annual Election Period is Here; 2015 Medicare Part B Premiums and Deductibles Remain Unchanged from 2014

Today marks the beginning of the Annual Election Period (AEP) for Medicare Health & Drug Plans.  This is the period during which Medicare beneficiaries may change their Medicare Advantage (Part C) plan or Medicare Part D Prescription Drug Plan.  Medicare beneficiaries also may use the Annual Election Period to dis-enroll from the Medicare Advantage program and return to Original Medicare.

The Medicare AEP runs from October 15 - December 7.  Medicare plans selected as part of AEP become effective on January 1, 2015 and are guaranteed for the duration of 2015 (subject to timely payment of plan premiums).  For more information, click here to be directed to CMS.gov.

Last week, the U.S. Department of Health & Human Services announced that the Medicare Part B premiums and deductibles for 2015 will remain the same as the last two years!  In addition, 2015 premiums, copays and deductibles for other Medicare programs were announced.  The Centers for Medicare & Medicaid Services (CMS) released a bulletin that can be read in its entirety by clicking on this link.

Until next time,

Andrew Herman, President
AH Insurance Services, Inc.

Supreme Court Issues Narrow Ruling on Hobby Lobby Stores Case

The U.S. Supreme Court ruled 5-4 today -- in Burwell v. Hobby Lobby Stores Inc. (Case number 13-354) -- that closely held corporations do have religious rights, and should be able to avoid complying with the U.S. Department of Health and Human Services (HHS) birth control mandate regulations.

The ruling appears to be narrow in scope, however, as Justice Samuel Alito wrote in an opinion for the majority that the opinion applies only to closely held corporations, and only to the birth control mandate provisions in the regulations that HHS wrote to implement basic preventive services benefits section of the Patient Protection and Affordable Care Act (PPACA).

Justice Alito wrote for the majority that a closely held corporation does have rights under the federal Religious Freedom Restoration Act of 1993 (RFRA).

RFRA prohibits the government from substantially interfering with a "person's exercise of religion, even if the burden results from a rule of general applicability," unless the government shows that applying the burden furthers a "compelling government interest" and is the "least restrictive means of furthering that compelling government interest."

The family that owns Hobby Lobby Stores and Hobby Lobby's sister company, Mardel Inc., and the family that owns Conestoga Wood Specialties Corp., wanted HHS and the courts to respect their ability to get protection from RFRA.  The Hobby Lobby case majority agreed that closely held corporations have RFRA rights, but avoided saying that the ruling applies to other types of corporations.

Alito noted that Hobby Lobby and three similar companies affected by the ruling are not publicly traded and are each owned and controlled by members of a single family.  Additionally, he said that the majority has not written a ruling that will apply to HHS vaccination mandates, blood transfusion mandates, or other mandates other than the birth control mandate.

"HHS points to no evidence that insurance plans in existence prior to the enactment of [PPACA] excluded coverage for such items," Alito wrote.  "Nor has HHS provided evidence that any significant number of employers sought exemption, on religious grounds, from any of [PPACA's] coverage requirements other than the contraceptive mandate."

Critics of the idea that RFRA can apply to companies -- including two dissenting Supreme Court justices: Ruth Bader Ginsburg and Sonia Sotomayor -- argued that RFRA provides religious rights only for individual people, not for companies.

Two other justices Stephen Breyer and Elena Kegan -- said the Hobby Lobby case plaintiffs' challenge to the HHS birth control mandate fails on its merits, but they said they did not need to decide whether for-profit corporations or the owners of for-profit corporations can bring RFRA claims.

In a concurring opinion supporting the majority decision, Justice Anthony Kennedy wrote that the Hobby Lobby opinion is not as sweeping as Ginsburg and Sotomayor fear.  According to Kennedy, HHS at least had an obligation to show that the mandate was the least restrictive means for achieving the goal of providing low cost access to contraceptives - and it did not do that.

The government already lets nonprofit employers avoid paying directly for contraceptive benefits, and that shows there is a less restrictive approach HHS could have used to accommodate the needs of closely held for-profit employers with objections to the birth control mandate, Kennedy wrote.

Not surprisingly, Democrats disagree with today's ruling and do not appear to see any political downside to taking on the decision.  The Democratic Senatorial Campaign Committee sent out an email shortly after the ruling in a fundraising effort, and several vulnerable red-state Democrats up for reelection were quick to criticize the decision.

"It is shameful that a woman’s access to contraception is even up for debate in the year 2014,” Sen. Kay Hagan (D-N.C.) said today.  “The choice about whether to use birth control should be between a woman and her doctor, not her boss, and no employer should be allowed to interfere with a woman’s access to contraception." 

Republicans applauded the decision.  "The Obama administration cannot trample on the religious freedoms that Americans hold dear,” Senate Minority Leader Mitch McConnell said in a statement.

The Kentucky Republican also took the opportunity to deride ObamaCare as “the single worst piece of legislation to pass in the last 50 years.”

House Speaker John Boehner (R-Ohio) said the decision is “another defeat for an administration that has repeatedly crossed constitutional lines in pursuit of its big government objectives.”

Sen. Ted Cruz (R-Texas), a potential 2016 GOP presidential nominee, said the decision is “a repudiation of the Obama administration’s untenable position that people with sincerely held religious beliefs should be forced to comply with an unconstitutional mandate while a parade of waivers, exemptions, and delays are granted for purely commercial and political interests.”

Editor's Note:  Generally this blog does not take sides in political issues, but I offer the following remarks for readers to consider:

1) It is disheartening to me that both political sides continue to demonize each other and further the dysfunction in Washington, D.C.  Political wedge issues such as abortion and contraceptives serve as provocation to distract the citizenry from common agendas that both sides support and carry out effectively.  It seems inappropriate to me that politicians on both sides make inflammatory statements designed to incite and divide.

2) Senator Hagan misleads her followers when she remarks that "It is shameful that a woman’s access to contraception is even up for debate in the year 2014."  Most reasonable people hearing that comment would assume that Hobby Lobby Stores did not want its employees having access to any contraceptives; yet further inspection reveals that Hobby Lobby objected to only a handful of contraceptives available - those that work to abort an already conceived embryo (not contraceptives used to prevent conception).  Hobby Lobby's health plan covers 80% of available contraceptives under the PPACA, but Senator Hagan would not want to be bothered by that detail with such a great opportunity to grandstand.

Until next time,

Andrew Herman, President

2014 Choosing a Medigap Policy Guide

The official 2014 Guide to Health Insurance for People with Medicare was published earlier this year by the Centers for Medicare and Medicaid Services (CMS).  This updated guide covers important topics such as:

• What is a Medigap policy
• What Medigap policies cover
• Your rights to buy a Medigap policy
• How to buy a Medigap policy

A Medigap policy is also known as 'Medicare Supplement'.  It is a private health insurance policy that supplements the Original Medicare Program (Parts A and B) by covering out-of-pocket costs not paid for by Medicare (such as co-payments, coinsurance and deductibles).

Medigap, or Medicare Supplement, policies are sold by their plan letter name such as "Plan F" or "Plan N".  Consumers purchasing Medigap typically also buy a Stand-alone Medicare Part D Prescription Drug Plan (PDP) since today's Medigap policies are not designed to cover prescription medicines.

Medigap coverage is not the same as the Medicare Advantage program (Part C of Medicare).  When you enroll into a Medicare Advantage plan, all of your Medicare benefits are delivered by a private insurance company.  Medicare Advantage plans most often are HMOs or PPOs, and they include medical and prescription drug coverage under one roof.  As well as the convenience factor, Medicare Advantage HMOs and PPOs typically have additional benefits and features that are not included with Original Medicare.  The primary downsides of having Medicare Advantage are: 1) the insurance company might have a limited provider network; and 2) you may need to contend with pre-authorization requirements not imposed by Original Medicare and Medicare Supplements.

Contact us if you are unsure which type of coverage is most suitable for you.

Click Here To Download the 2014 Choosing a Medigap Policy Guide

Until next time,

Andrew Herman, President
AH Insurance Services, Inc.

Health Insurance Marketplace - Most Existing Customers Can Auto-Enroll into 2015 Plan

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