HHS: Health Insurance Marketplace to grow 25 percent in 2015
By - US consumers will soon have more options when it comes to choosing healthcare coverage, according to recent research. The Health Insurance Marketplace will have 25 percent more issuers offering Marketplace coverage in 2015, stated a Department of Health and Human Services (HHS) report. Specifically, 77 more issuers will offer coverage next year.
HHS reviewed data from 36 states that run or are fully supported by the federal government (Federal Marketplace). Additionally, the agency looked at information from eight states operating state-based Marketplaces.
“When consumers have more choices, we all benefit,” Secretary Sylvia M. Burwell said in a statement. “In terms of affordability, access, and quality, today’s news is very encouraging. It’s a real sign that the Affordable Care Act is working.”
The report showed that the Federal Marketplace states alone will have 57 more issuers in 2015, which is a 30 percent net increase over this year. The eight states that use state-based Marketplaces will have six more issuers in 2015, which is a 10 percent net increase over 2014.
Additionally, four of the Federal Marketplace states will have at least double the number of issuers they had in 2014.
“Previous research has found that the number of issuers in a rating area is associated with more affordable premiums for benchmark plans (a 4 percent decrease in the premium of the second-lowest cost silver plan) for individuals and reduced costs for the federal government,” stated the report. “Additionally, in 2014, areas with a larger number of issuers were found to offer a wider range of choices among plan types, such as preferred provider organizations (PPOs), health maintenance organizations (HMOs), and consumer-operated and oriented plans (CO-OPS).”
HHS added that reports indicate that some of the largest insurers in the nation are increasing their participation in healthcare marketplaces next year. Independent research shows that participation by a large issuer could also significantly reduce benchmark premiums, according to HHS.
HHS has been working to ensure that 2015 was a more successful year for Open Enrollment for the Health Insurance Marketplace. Earlier this year, HHS announced new management appointments.
Kevin Counihan was announced as the Centers for Medicare & Medicaid Services (CMS) Marketplace Chief Executive Officer (CEO) and Lori Lodes was appointed to be the Director of Communications for CMS. Counihan was tasked with leading the federal Marketplace and coordinating with the state exchanges. Additionally he was set to lead the Center for Consumer Information and Insurance Oversight.
At the time of the new appointments, Lodes’ assignment was to ensure that the message for 2015 Open Enrollment was not ignored.
