Health Reform WK-EDGE Exchange policy cancellations usually due to cost
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Tuesday, June 20, 2017

Exchange policy cancellations usually due to cost

By Kathryn S. Beard, J.D.

An analysis of individuals with health insurance policies purchased through the exchange who cancelled their policies during 2017 determined that, of consumers who left for reasons other than obtaining insurance through another source, most left due to higher premiums and ineligibility for financial assistance. Two CMS reports showed that consumers whose carriers chose to cancel plan options or stop offering coverage on the exchange are less likely to select, purchase, and maintain coverage (Health Insurance Exchanges Trends Report, June 12, 2017; 2017 Effectuated Enrollment Snapshot, June 12, 2017).

The reports showed that for the 2017 open enrollment period, approximately two million individuals who selected a plan on the exchange did not effectuate coverage by March 15, 2017. Together, they show that some exchange plans are cost prohibitive for individuals. Although 60 percent of consumers who left the exchange did so due to gaining employer-sponsored coverage, a significant number had problems with affordability.

HHS Secretary Tom Price said that he believes that equipping states to "serve their unique and diverse populations" will help ensure affordable coverage for Americans.

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