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InsiderOnline Blog: May 2014

ObamaCare—Now with Less Transparency

According to PoliticoPro, there will be no more monthly reports on ObamaCare enrollment. Even though the open enrollment period has ended, people can still drop out and re-enroll. Without regular enrollment reports, we can’t be sure an insurance death spiral isn’t happening, explains Michael Cannon:

I have written at some length about the huge incentives ObamaCare creates to drop one’s coverage and wait until sick to re-enroll, and how those incentives threaten the stability of the law’s health insurance Exchanges. Basically, if you drop your coverage, (1) avoiding the penalty is fairly straightforward, (2) you can get re-enroll the following January no matter how sick you get, and (3) in many cases, ObamaCare lets you enroll in coverage before January, again no matter how sick you get. If healthy enrollees become aware of and act on this perverse incentive, the Exchange pools will grow sicker, premiums will rise further, and the Exchanges could collapse.

[…] [I]f attrition overwhelms new enrollment, it could mean that consumers find Exchange plans too expensive relative to job-based coverage, or that the poor quality of Exchange coverage is causing people to flee, or that people are gaming the system in the above manner. You would think this is something worth monitoring. And it is. HHS just doesn’t want you monitoring it. [Forbes, May 22]

Posted on 05/23/14 08:52 PM by Alex Adrianson

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