State-run exchanges report some enrollment success

The chaotic rollout of the federal online marketplace, HealthCare.gov, and the low enrollment through the site has been the dominant storyline since it opened for business on Oct. 1. Fewer than 27,000 people in the 36 states served by the federal portal successfully enrolled during the first month of business.

But state-run exchanges operated in 14 states and the District of Columbia generally fared better in getting up and running. About three quarters of enrollees nationwide as of Nov. 2—nearly 80,000—signed up for private plan coverage through those 15 exchanges. That significantly boosted the first month's nationwide enrollment, though the 106,000 figure still amounted to only about one-fifth of what the Obama administration originally projected for October.

On Thursday, Families USA, a group focused on expanding insurance coverage, hosted a call with reporters to emphasize some of these state successes. In New York, for example, as of Nov. 12, nearly 50,000 people had signed up for coverage. Those enrollments were split almost evenly between individuals who qualified for Medicaid plans and those who signed up for a private health plan offered on New York State of Health.

In Connecticut, roughly 14,000 individuals have signed up for coverage through the state's online marketplace. Kevin Counihan, CEO of Access Health CT, said that's roughly double what was anticipated. Those expectations were influenced by Counihan's experience serving as chief marketing officer for Massachusetts' Connector exchange when it launched in 2007. Only 123 individuals enrolled for coverage in the first month that the Massachusetts marketplace was open for business in 2007.

Based on the Massachusetts experience, “we were expecting a slower ramp up than we've had,” Counihan said.

To the surprise of many, Oregon's exchange has been one of the most troubled state-run marketplaces, despite strong support for Obamacare from the state's governor and legislative leaders and the state's early start in preparing. More than six weeks after purportedly opening for business, not a single person has purchased coverage through Cover Oregon owing to technological problems.

But Amy Fauver, the chief communications officer for Cover Oregon, insisted that the exchange shouldn't be viewed as a failure. She indicated that the state's insurance rate has dropped by 10% since Oct. 1. The reason is that more than 70,000 people have signed up for coverage through Medicaid.

But even in states where the exchanges are functioning relatively well, there is some residual fallout from the problems associated with the federal website. Covered California enrolled roughly 60,000 individuals for coverage in its first six weeks of operations. But Peter Lee, the exchange's executive director, said his marketplace has had to tweak its marketing material to emphasize that the California website is working, because residents aren't necessarily aware that it's separate from the federal marketplace.

“Enrollment has been reduced because of this drumbeat of information that the website doesn't work,” Lee said.

Ron Pollack, executive director of Families USA, suggested that the relative success of the state-run exchanges shows what will ultimately happen nationwide under the Patient Protection and Affordable Care Act. “As things get improved with respect to the federal website, I think we're going to see similar significant enrollment occur,” he said.

Follow Paul Demko on Twitter: @MHpdemko