Should ACA’s open enrollment period be moved?

A study in HealthAffairs explores the effects of moving open enrollment on enrollment numbers and plan choices.

Insurance News

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Health insurance producers have long argued that a shift in the open enrollment period—currently slated to continue through February 2015—would benefit their clients’ schedules and pocketbooks, not to mention their own long work hours and bottom line.

Now, there is researched proof.

A recent study published on HealthAffairs.org argues that there is “considerable seasonality in measures of financial stress” and as a result, the most opportune time for scheduling open enrollment may be between February 15 and April 15—after most Americans have received their income tax refunds.

As it currently stands, the open enrollment period is dissuading many low-income families from purchasing health insurance.

“[The current open enrollment period occurs] just when many lower-income people are financially stressed by demands of the holiday season,” wrote study authors Katherine Swartz and John Graves. “When people’s decisions-making capacity is stretched thin, either they cannot make decisions or they make poor choices.”

Swartz and Graves even went so far as to call the current open enrollment season “a mistake,” and suggested that based on Google data, searches related to health insurance drop significantly between Thanksgiving and Christmas, resurfacing in early January. Similarly, plan choices are more likely to be made with "tunnel vision," when stressed-out shoppers think only of the bottom line given their forthcoming holiday obligations.

“The ACA’s goals of maximizing enrollment in the health plans and maintaining a healthy balance of enrollees with low and high risks of having high medical expenses are more likely to be achieved if the open enrollment season is shifted to the two months between February 15 and April 15 each year,” they said.

The move would also be favorable for producers.

Susan Lundy, owner of Benefits By Design in Larkspur, Calif., serves clients for both their health insurance and Medicare needs. One of her biggest complaints with this year’s open enrollment period is the fact that it coincided with that of Medicare.

“Obviously no one’s asked an agent who’s been selling for a long time what would happen if they have open enrollment for everybody under the age of 65 at the same time as open enrollment for everyone over the age of 65,” she said.

Orange County agency owner Patrick Freeman agreed, suggesting that the government move either the open enrollment period for Medicare or the larger period for Obamacare.

“Otherwise,” he said, “I’m going to make the choice to serve my Medicare clients.”

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