The Centers for Medicare & Medicaid Services (CMS), part of the U.S. Department of Health and Human Services has released new information about the state of U.S. health insurance exchanges. At present, at least 47 counties nationwide are projected to lose access to healthcare through health insurance exchanges for 2018, according to People’s Pundit Daily.
In addition, CMS projects that another 40 percent of the country -- 1,200 counties -- will have just one insurer active on health insurance exchanges in 2018. The CMS county-level participation map for 2018 is based on data through June 9, 2017.
At least 35,000 active exchange participants live in the 47 counties projected to be without coverage in 2018, and the no choice number could rise before the annual open enrollment period begins. CMS indicated it is working with state departments of insurance and carriers to restore access to healthcare plans.
CMS Finds Higher Costs Key Factor in Consumers Dropping Exchange Plans
CMS also released two additional reports about consumers use of health insurance exchanges.
By March of this year, 1.9 million people had dropped their 2017 exchange healthcare plans, according to Fierce Healthcare. A study of March 2016 attrition rates -- where consumers enrolled in exchange plans for the year, but cancelled or had their plans terminated by March -- showed relatively the same drop.
The second report, The Health Insurance Exchanges Trends Report, concluded that high costs and a lack of affordability are the most common factors that led consumers to cancel coverage. The key findings are:
- Consumers with higher premiums were more likely to terminate or cancel coverage.
- Consumers listed lack of affordability as one of the most common reasons for not paying for the first month’s coverage.
- Disruptions in coverage options lead to fewer consumers retaining their coverage.
- Consumers without financial assistance were more likely to terminate or cancel coverage.
The findings are based on an online voluntary survey completed by consumers who left the exchanges after August 2016. About 18,212 individuals that terminated coverage responded by April 2017. Of those, 14,332 initially paid for their plan and then stopped paying premiums and 3,880 selected a plan but never paid their first premium.
About 49 percent of consumers who terminated their plans after paying for at least one month’s premium said they gained other coverage elsewhere.
Consumers are sending a clear message that cost and affordability are major factors in their decision to cancel or terminate coverage,” said Seema Verma, CMS administrator in a prepared statement.
Ohio, Missouri, Virginia, West Virginia, Iowa, Nebraska and other states are experiencing instability in the individual healthcare marketplace.
