New Public Awareness Program Led by President Obama – Nov 2, 2015
According to a New York Times article dated 10/29/15, the Obama administration would “wage a national advertising campaign to counter a perception among people with low incomes that health insurance under the Affordable Care Act was not affordable.” Focused on TV ads, they would review the part of the ACA that deals with subsidies for individuals with low paying jobs. Applicants would simply apply for such help and with the appropriate financial evidence, and subsidies will be available.
The country is now (as of 11/1/15) in the “open enrollment period” in which people can select and compare plans best suited for them and their families. The director of HHS (Health & Human Services) Sylvia Burwell said that the ads will begin immediately to help the decision making process on the part of consumers seeking coverage.
A new functionality of the ACA website will allow consumers to search specifically for doctors and or hospitals. This attribute may allow a consumer to stay with current providers assuming the coverage offered by that program and the price meets the consumer’s needs.
HHS engaged private research to determine the awareness of the general public regarding the subsidies that are available to health care seekers in both the federal and state markets. Surprisingly, very few consumers were aware that the subsidies in the form of tax credits can lower monthly premiums. In short the Treasure would pay part of the premiums directly to the insurance company.
Reports show that those with the greatest needs had actually already signed up over the past two years. Burwell reports that “she expected 10 million people to be enrolled in coverage through the federal and state marketplaces at the end of next year — a modest increase over the 9.9 million enrolled at the end of June.”
Burwell and staff are now trying to determine why enrollment declined since early 2015 as had happened in 2014. Studies have revealed that some who enroll lose coverage due to failure to pay their part of the already subsidized premiums. Others have received plans from employers or moved into the Medicare/Medicaid programs
The reality is that most plans offered on public exchanges require large payments in one of two forms; a) high premiums or b) high deductibles. These two attributes work exactly opposite one another. If one wants to reduce the monthly premiums, they take a higher deductible and vice-versa. It is important for consumers to become knowledgeable and well versed on how insurance plans work. Learning these few things can save consumers from unexpected surprise expenses, and can help them budget for the proper plan.
Burwell in these ads will remind consumers of the financial penalties associated with choosing not to carry insurance in 2016 to wit; $695 for each uninsured adult or 2.5% of the household income- the greater of the two.
Numerous “federal insurance cooperatives” that were formulated by the ACA have folded or decided to close after losing money and therefore their payment capabilities. This will push about one half million back into the process of looking for new plans.
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