The Obama administration has run into broad opposition from insurers, providers and consumer groups to its proposal that customers who are automatically re-enrolled be shifted to less-expensive health coverage.
In November, the CMS suggested that consumers who don't shop for a new plan should be moved into plans with lower premiums. Under current policy, members are automatically re-enrolled in their same plan unless they elect otherwise.
The administration is concerned that many 2014 customers will face higher insurance premiums if they don't return to the exchanges and shop. So far during the current open enrollment, only about 40% of federal exchange customers have returned to HealthCare.gov to shop.
“Because we believe that many consumers place a high value on low premiums when selecting a plan, we believe that consumers could benefit from alternative re-enrollment hierarchies,” HHS said at the time.
But many urged the government not to adopt that change in comments to the agency. Blue Shield of California said consumers don't buy a health plan based on cost alone. They value other elements such as provider networks and brand.
Automatically re-enrolling consumers based solely on the price of premiums would “drive a race to the bottom,” the insurer said.
“We would remind HHS of the consumer concerns focused last year on the ability of consumers to keep their plan if they like it,” wrote Andy Chasin, an executive with Blue Shield of California. “This policy would run exactly counter to that promise.”
The American Hospital Association issued a similar caution. “Maintaining access to preferred providers is critically important for some plan enrollees, often more important than the premium level, especially for those engaged in ongoing care,” AHA Executive Vice President Rick Pollack wrote.
Consumer advocacy groups also were wary.
“We recognize that there needs to be a default process for auto-renewing,” said New Hampshire Voices for Health. “However, giving people the choice of being defaulted into a low-cost plan a year ahead of time does not address the critical need to develop effective ways to encourage consumers to play an active role in evaluating their plan choices each year.”
Overall, the CMS received more than 300 comments from various healthcare companies, groups and individuals on the proposed rule. The agency is expected to issue final 2016 marketplace rules next year.
