The Obama administration has offered millions of people the chance to sign up for health plans after the enrollment deadlines over the last two years, a move that insurance companies say has destabilized the markets and raised premiums, according to The New York Times.
The federal government has created upwards of 30 "special enrollment" categories and emailed millions of Americans last year, encouraging them to see if they could sign up for a health plan after the open enrollment deadline passed. Consumers may qualify for special enrollment if they experience certain life changes, like "losing your coverage, having a child, turning 26, moving or getting married," according to the report.
However, this ultimately contributed to higher premiums, as many people seize the extended enrollment opportunities as a chance to avoid purchasing a plan until they are sick or need medical services, according to the report.
"Individuals enrolled through special enrollment periods are utilizing up to 55 percent more services than their open enrollment counterparts," the Blue Cross and Blue Shield Association told the Obama administration, according to the report.
Steven B. Kelmar, executive vice president of Aetna, wrote in a letter to HHS Secretary Sylvia Matthews Burwell, "Many individuals have no incentive to enroll in coverage during open enrollment, but can wait until they are sick or need services before enrolling and drop coverage immediately after receiving services, making the annual open enrollment period meaningless," according to the report.
Mr. Kelmar said a quarter of the applications Aetna received in the ACA marketplace in 2015 came through special enrollment. Aetna also said special enrollment enrollees typically stay on their health plans for less than four months, while enrollees who sign up during the annual open enrollment period maintain their coverage for eight to nine months, according to the report.
In a notice recently published in the Federal Register, the Obama administration said it has heard concerns people have been abusing the special enrollment periods and asked insurance companies for evidence. The administration is expected to outline plans to prevent the misuse or abuse of special enrollment periods this week. However, it maintains people must have a way to sign up when they legitimately qualify.