qotd: HHS announces "effectuated" enrollment in ACA plans

HHS.gov
June 2, 2015
March Effectuated Enrollment Consistent with Department's 2015 Goal

The Centers for Medicare & Medicaid Services today released a data
snapshot providing a detailed look at how many consumers paid their
premiums in 2015 and had "effectuated" coverage in March 2015. During
Open Enrollment for 2015 Marketplace coverage, through February 22,
about 11.7 million Americans selected plans through the Marketplaces. On
March 31, 2015, about 10.2 million consumers had "effectuated" coverage
which means those individuals paid for Marketplace coverage and still
have an active policy on that date.

Nearly 8.7 million (85 percent) consumers nationwide and 6.4 million
consumers in the 34 states with Federally-facilitated Marketplaces
received an average premium tax credit of $272 per month to make their
premiums more affordable throughout the year.

In November 2014, the Department set a goal of 9.1 million effectuated
enrollees at the end of calendar year 2015. The March 2015 effectuated
enrollment number is consistent with meeting the Department's goal for
2015 effectuated enrollment.

The Marketplace effectuated enrollment snapshot provides point-in-time
estimates of individuals who effectuated their enrollment and have an
active policy on that date; it does not measure the rate at which
consumers pay their first month's premium. As is the case in other
well-functioning insurance markets, CMS expects these numbers to change
over time in response to changes in consumer needs and life
circumstances such as employment status or marriage, which may cause
consumers to newly enroll in, change, or cancel their plans.

http://www.hhs.gov/news/press/2015pres/06/20150602a.html

March 31, 2015 Effectuated Enrollment:
http://www.cms.gov/Newsroom/MediaReleaseDatabase/Fact-sheets/2015-Fact-sheets-items/2015-06-02.html

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Comment by Don McCanne

"Effectuated" enrollment in the ACA exchange plans is an evasive term to
obscure the fact that 13 percent of those enrolled for 2015 had already
dropped out by the end of the first quarter. Also, when they decided
that previous anticipated levels of enrollment were unrealistic, they
set a lower goal which they now report that were able to meet. Surprise!

They do concede that exchange plan enrollment is inherently unstable, as
with "other well-functioning insurance markets," they state. Not only do
large numbers of eligible individuals fail to attempt to enroll, but
changing circumstances and eligibility cause attrition in enrollment,
especially for those who find that they are unable to pay their share of
the premium.

If we really want everyone insured, this clearly is not the way to do
it. "Well functioning insurance markets" that leave tens of millions
uninsured is not a standard that we should accept. Enrollment should be
automatic for everyone, for life. Single payer is what we need.