6 reasons for ACA insurance dropouts

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With open enrollment looming, the federal and state marketplaces created under the Affordable Care Act face an unexpected challenge, according to The New York Times.

That challenge is to retain existing members.

According to The New York Times, as of June the marketplaces had lost about 15 percent of the members they had at the end of open enrollment in February.

Here are six reasons why Americans are dropping coverage gained under the ACA, as presented by The New York Times.

1. Cost. Some who initially enrolled and later dropped coverage lost their jobs or realized they could not afford it. Others could not afford it when their subsidies could not be approved due to unverifiable income information, according to the report.

2. Medicaid expansion. For residents in states that opted out of Medicaid expansion, federal subsidies may not be enough to pay for plans on the exchange.

3. Confusion. Enrollment counselors told The New York Times those who did not understand what information was required or that monthly payments were involved quickly lost coverage.

4. Citizenship or immigration status. In the states using the federal exchange, more than 420,000 lost coverage due to insufficient documentation.

5. Employer insurance. Some left the marketplace because they got a new job with its own health benefits.

6. Dissatisfaction. Mississippi Insurance Commissioner Mike Chaney speculated some of the loss in his state could stem from consumer dissatisfaction with some of the plans offered on its exchange.

 

More articles on payer issues:

Blue Shield of California closes on $1.2 billion acquisition of Care 1st
Premiums for Medicare Part D plans on the rise
CMS releases Medicare Advantage 2016 star ratings

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