Skip to main content
Sister Publication Links
  • ESG: THE IMPLEMENTATION IMPERATIVE
Subscribe
  • Sign Up Free
  • Login
  • Subscribe
  • News
    • Current News
    • Providers
    • Insurance
    • Digital Health
    • Government
    • Finance
    • Technology
    • Safety & Quality
    • Transformation
    • People
    • Regional News
    • Digital Edition (Web Version)
    • Patients
    • Operations
    • Care Delivery
    • Payment
    • Midwest
    • Northeast
    • South
    • West
  • Unwell in America
  • Opinion
    • Bold Moves
    • Breaking Bias
    • Commentaries
    • Letters
    • Vital Signs Blog
    • From the Editor
  • Events & Awards
    • Awards
    • Conferences
    • Galas
    • Virtual Briefings
    • Webinars
    • Nominate/Eligibility
    • 100 Most Influential People
    • 50 Most Influential Clinical Executives
    • Best Places to Work in Healthcare
    • Excellence in Governance
    • Health Care Hall of Fame
    • Healthcare Marketing Impact Awards
    • Top 25 Emerging Leaders
    • Top 25 Innovators
    • Diversity in Healthcare
      • - Luminaries
      • - Top 25 Diversity Leaders
      • - Leaders to Watch
    • Women in Healthcare
      • - Luminaries
      • - Top 25 Women Leaders
      • - Women to Watch
    • Digital Health Transformation Summit
    • ESG: The Implementation Imperative Summit
    • Leadership Symposium
    • Social Determinants of Health Symposium
    • Women Leaders in Healthcare Conference
    • Best Places to Work Awards Gala
    • Health Care Hall of Fame Gala
    • Top 25 Diversity Leaders Gala
    • Top 25 Women Leaders Gala
    • - Hospital of the Future
    • - Value Based Care
    • - Hospital at Home
    • - Workplace of the Future
    • - Digital Health
    • - Future of Staffing
    • - Hospital of the Future (Fall)
  • Multimedia
    • Podcast - Beyond the Byline
    • Sponsored Podcast - Healthcare Insider
    • Video Series - The Check Up
    • Sponsored Video Series - One on One
  • Data Center
    • Data Center Home
    • Hospital Financials
    • Staffing & Compensation
    • Quality & Safety
    • Mergers & Acquisitions
    • Data Archive
    • Resource Guide: By the Numbers
    • Surveys
    • Data Points
  • MORE+
    • Contact Us
    • Advertise
    • Media Kit
    • Newsletters
    • Jobs
    • People on the Move
    • Reprints & Licensing
MENU
Breadcrumb
  1. Home
  2. Insurance
July 02, 2018 01:00 AM

About 1.1 million people dropped 2018 Obamacare coverage

Shelby Livingston
  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print

    (Updated on July 3)

    About 1.1 million health insurance exchange customers have dropped their 2018 coverage as of mid-March, according to CMS data released Monday. Still, more exchange enrollees paid their first-month premiums in 2018 than in 2017, despite fewer sign-ups during open enrollment.

    Of the nearly 11.8 million people who signed up for 2018 coverage through the federal and state health insurance exchanges, a little more than 10.6 million paid their premiums for the first month and had an active policy as of February 2018. The rest—about 9%, or 1.1 million people—who chose a plan or were automatically enrolled during open enrollment did not pay first-month premiums and dropped off the insurance rolls.

    The number of people who paid their premiums was slightly higher in 2018 than in 2017, despite fewer people signing up for coverage this year. About 10.3 million people out of 12.2 million who signed up for a 2017 exchange plan paid their premiums for the first month of coverage.

    There could be a few reasons more people held onto their insurance plans this year. The average federal premium tax subsidy increased in 2018, so many Obamacare customers were able to find plans with zero or very low-cost premiums, said Matt Fiedler, an economist with the Brookings Institution.

    It could also be a timing quirk, he said. The Trump administration shortened the open enrollment period for 2018 coverage to end on Dec. 15 with coverage beginning in January. In previous years, open enrollment had ended on Jan. 31 with many health plans effective at the start of February or March. Because the CMS data focuses on enrollees with an active policy as of February, the agency's 2017 data would not have captured those members with coverage starting in March.

    As was the case in prior years, more enrollees are likely to drop coverage throughout the year. The CMS said 8.9 million people remained in exchange plans by the end of 2017. Most of those who drop exchange coverage do so because they are instead enrolled in a health plan through their employer, Medicare or Medicaid.

    The percentage of enrollees who receive financial assistance to pay for premiums rose in 2018 to 87%, compared with 84% in 2017. About 9.2 million of those still enrolled in 2018 coverage receive an advance premium tax credit to help subsidize the cost of monthly premiums. The tax credits are available to people with incomes between 100% and 400% of the federal poverty level.

    Meanwhile, about 5.6 million, or 53%, of enrollees received a cost-sharing reduction subsidy available to those who make less than 250% of the poverty level and enrolled in a silver plan. Even though the Trump administration ended the cost-sharing reduction payments late last year, insurers are still required to lower the deductibles and copayments for eligible members.

    The CMS also said enrollees paid an average monthly premium of $597 in February before taking into account tax credits—an increase of 27% over the average premium in 2017. The average tax credit totaled $520 per month, up 39% over the size of the credit in 2017.

    The size of tax credits available to eligible enrollees spiked in 2018 because of the way state regulators and health insurers handled the federal government's decision to end cost-sharing payments. Insurers in many states loaded a surcharge attributable to the lost cost-sharing reductions into silver plan premiums, which subsequently increased the amount of the federal premium tax credit available for most enrollees. Some exchange shoppers were able to find zero-premium bronze plans or lower-cost gold plans as a result.

    Still, enrollees who weren't eligible for financial assistance were forced to stomach large premium increases. Another report released Monday by the CMS compared enrollment among subsidized and unsubsidized members enrolled in coverage through the individual market both on and off the exchanges. Only people who enroll in coverage through the exchange are eligible for a premium tax credit.

    Unsurprisingly, the CMS found that most of the people who dropped their insurance between 2016 and 2017 did not receive premium tax credits to subsidize the cost of their monthly premiums.

    According to the agency, the average monthly enrollment among unsubsidized members declined by 1.3 million, or 20% from 2016 to 2017, while enrollment among those receiving premium tax credits decreased just 3%, or 223,000 members. Average monthly premiums in 2017 increased 21% over 2016.

    In 2017, an average of 13 million people were enrolled in coverage through the individual market, compared with 14.5 million in 2016.

    Letter
    to the
    Editor

    Send us a letter

    Have an opinion about this story? Click here to submit a Letter to the Editor, and we may publish it in print.

    Recommended for You
    Clawbacks
    Insurance companies ramp up efforts to claw back money from providers
    Feds take aim at prior authorization
    Feds take aim at prior authorization
    Most Popular
    1
    More healthcare organizations at risk of credit default, Moody's says
    2
    Centene fills out senior executive team with new president, COO
    3
    SCAN, CareOregon plan to merge into the HealthRight Group
    4
    Blue Cross Blue Shield of Michigan unveils big push that lets physicians take on risk, reap rewards
    5
    Bright Health weighs reverse stock split as delisting looms
    Sponsored Content
    Daily Finance Newsletter: Sign up to receive daily news and data that has a direct impact on the business and financing of healthcare.
    Get Newsletters

    Sign up for enewsletters and alerts to receive breaking news and in-depth coverage of healthcare events and trends, as they happen, right to your inbox.

    Subscribe Today
    MH Magazine Cover

    MH magazine offers content that sheds light on healthcare leaders’ complex choices and touch points—from strategy, governance, leadership development and finance to operations, clinical care, and marketing.

    Subscribe
    Connect with Us
    • LinkedIn
    • Twitter
    • Facebook
    • RSS

    Our Mission

    Modern Healthcare empowers industry leaders to succeed by providing unbiased reporting of the news, insights, analysis and data.

    Contact Us

    (877) 812-1581

    Email us

     

    Resources
    • Contact Us
    • Advertise with Us
    • Ad Choices Ad Choices
    • Sitemap
    Editorial Dept
    • Submission Guidelines
    • Code of Ethics
    • Awards
    • About Us
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Modern Healthcare
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • News
      • Current News
      • Providers
      • Insurance
      • Digital Health
      • Government
      • Finance
      • Technology
      • Safety & Quality
      • Transformation
        • Patients
        • Operations
        • Care Delivery
        • Payment
      • People
      • Regional News
        • Midwest
        • Northeast
        • South
        • West
      • Digital Edition (Web Version)
    • Unwell in America
    • Opinion
      • Bold Moves
      • Breaking Bias
      • Commentaries
      • Letters
      • Vital Signs Blog
      • From the Editor
    • Events & Awards
      • Awards
        • Nominate/Eligibility
        • 100 Most Influential People
        • 50 Most Influential Clinical Executives
        • Best Places to Work in Healthcare
        • Excellence in Governance
        • Health Care Hall of Fame
        • Healthcare Marketing Impact Awards
        • Top 25 Emerging Leaders
        • Top 25 Innovators
        • Diversity in Healthcare
          • - Luminaries
          • - Top 25 Diversity Leaders
          • - Leaders to Watch
        • Women in Healthcare
          • - Luminaries
          • - Top 25 Women Leaders
          • - Women to Watch
      • Conferences
        • Digital Health Transformation Summit
        • ESG: The Implementation Imperative Summit
        • Leadership Symposium
        • Social Determinants of Health Symposium
        • Women Leaders in Healthcare Conference
      • Galas
        • Best Places to Work Awards Gala
        • Health Care Hall of Fame Gala
        • Top 25 Diversity Leaders Gala
        • Top 25 Women Leaders Gala
      • Virtual Briefings
        • - Hospital of the Future
        • - Value Based Care
        • - Hospital at Home
        • - Workplace of the Future
        • - Digital Health
        • - Future of Staffing
        • - Hospital of the Future (Fall)
      • Webinars
    • Multimedia
      • Podcast - Beyond the Byline
      • Sponsored Podcast - Healthcare Insider
      • Video Series - The Check Up
      • Sponsored Video Series - One on One
    • Data Center
      • Data Center Home
      • Hospital Financials
      • Staffing & Compensation
      • Quality & Safety
      • Mergers & Acquisitions
      • Data Archive
      • Resource Guide: By the Numbers
      • Surveys
      • Data Points
    • MORE+
      • Contact Us
      • Advertise
      • Media Kit
      • Newsletters
      • Jobs
      • People on the Move
      • Reprints & Licensing