During the 2018 coverage period, 48 percent of health insurers selling qualified health plans through the ACA marketplace also offered Medicaid managed care coverage within the same state, according to an analysis from the Association for Community Affiliated Health Plans.
The overlap is more prevalent this year than in 2017. In addition, 20 percent fewer insurers offered marketplace coverage in 2018 compared to last year, with 192 offering plans this year.
"Overlap issuers can soften the effect of 'churn,' a phenomenon where people move between eligibility for Medicaid programs and subsidized Marketplace coverage," according to ACAP. "Minor fluctuations in income can shift working adults with low incomes out of Medicaid eligibility and into Marketplace coverage, or vice versa. These fluctuations can arise from seasonal employment, extra or fewer hours at work, or even a month that has five weeks rather than four."
When analyzed on a county-by-county basis, disparity exists in the number of overlap plans. For instance, 48 percent of all Texas counties have no overlap health insurers. Only 6 percent of Texas counties have more than one insurer offering marketplace coverage and managed Medicaid plans. In comparison, 87 percent of New York counties have two or more overlap insurers.
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