The recent announcement by the HHS has added to the debate about ACA Obamacare. The proposals would mean that those who signed up for health plans via healthcare.gov would be automatically enrolled into the same plan for year two, assuming that the plan was still available and that family circumstances hadn’t changed.
The concern for brokers and agents is how that might impact on commission payments; would they automatically get year two payments, and will auto-enrol continue indefinitely? These are questions that are hard to answer at this time, as details of the proposal are yet to be fully revealed.
It’s possible that this side of the idea hasn’t been considered; it’s a measure designed to simplify the process for consumers.
Mark Brown, a broker based in Naperville IL, says that ACA has proved to be “expensive, confusing and complex” and says the businesses he works with agree.
Mark is absolutely in favor of auto-enrollment though: “It absolutely should be auto-enroll or a lot of people will end up even more confused......... No one liked signing up the first time; they will like it less the 2nd, especially if there is an increase in their premium.”
Healthcare research firm
Avalere takes a different view though. While the requirements of automatically renewing mean the same plan must be available, it does not have to available at the same cost. “Most enrollees in 2014 chose a plan based on the monthly premium. However, the lowest cost plans in 2014 may no longer be low cost in 2015,” said Elizabeth Carpenter, director at Avalere Health. “Before consumers renew their 2014 plan, they should consider the trade-off between continuity of care and lower monthly premiums.”
Potentially this creates a marketing opportunity for agents and brokers. While the default position may be to go with the easy option of auto-enroll, brokers and agents are uniquely placed to make the case for shopping around.
