The federal government’s ACA Marketplace is seeing more signups than ever since its creation after the Affordable Healthcare Act was passed in 2010. In this year’s open enrollment, the Marketplace could see its highest number of new signups ever. While the ACA Marketplace is getting more enrollment, private individual plans off Marketplace are becoming less popular.
Health Insurance Broker Expects a Boost in Marketplace Enrollment
According to the U.S. Department of Health and Human Services, more than
16 million people signed up for an
ACA Marketplace plan during last year’s open enrollment. That number is expected to increase even more during 2023’s open enrollment, due to more potential renewals, fewer people qualifying for Medicaid and an increase in subsidies to lower premiums.
Enrollment in Marketplace plans peaked in early 2015 but then experienced sharp declines from 2016 to 2020 due to the Trump administration’s limits of federal cost-sharing reduction, which increased health insurance premiums from Marketplace.
After 2021, Marketplace enrollees started to increase. The new Biden administration and the passage of the
American Rescue Plan Act brought in more subsidies to attract uninsured or underinsured consumers to the Marketplace. Throughout all of the
group health insurance industry, all plans have seen increases in enrollment since 2021.
Buyers Rely on Enhanced Subsidies
The Biden administration has continued to expand and enhance subsidies for consumers shopping for health insurance on Marketplace. The Inflation Reduction Act (IRA) in 2022 added more subsidies for health insurance buyers until 2025. Out of the current enrollees in the Marketplace, more than
14 million receive subsidies for lower premiums.
Current subsidies from the IRA allow Marketplace buyers to receive discounted premiums as long as their income levels are no more than 400% of the federal poverty limits. A family of four, for example, could receive subsidies if their income is $120,000 or lower. With rising costs throughout the country for the basics, such as food and other grocery store items, this helps consumers access more affordable healthcare.
Additionally, many consumers who currently have plans off Marketplace may be now eligible for discounted premiums through the federal government’s healthcare portal due to the IRA. As more people discover how much money they could save by shopping for health insurance on Marketplace, the number of enrollees continues to expand.
Non-ACA-Compliant Plan Enrollments at Record Lows
At the opposite end of the spectrum in the health insurance industry is what’s happening with non-ACA health insurance plans through other private companies. These plans are losing enrollees and popularity as more consumers choose Marketplace options. Non-ACA plans are health insurance offerings from private companies that don’t accept federal government subsidies.
During the Trump era, the federal government promoted these plans and passed policies that helped boost their membership numbers. Now that there is a Democrat in the White House, the plans have lost some of their support and have seen drastic losses in new enrollment sign-ups.
Despite the fact that the Marketplace plans are cheaper for most people, there are still some consumers who choose a non-ACA plan. Customers who may not qualify for subsidies are more likely to go with these health insurance plans. Additionally, undocumented immigrants and employees of businesses that offer affordable plans with
benefits management can’t get Marketplace subsidies.
Premium Increases and the Future
In 2024, it’s likely that costs for health insurance coverage will rise. For consumers enrolled in a non-ACA plan, that means higher premiums are potentially coming soon. Enrollees in Marketplace plans may not see higher premiums while the IRA is in effect until 2025. It’s likely that the next two years of open enrollment will see more increased enrollment in the Marketplace plans.
Depending on the next presidential election, the future beyond 2025 is unclear. With the federal government’s support of subsidized healthcare, the ACA Marketplace may continue to see rising enrollment in the near future as non-ACA plans lose footing due to affordability. Any expert health insurance broker may recommend enrolling in an ACA Marketplace plan.
Choose the Right Plan for Your Health Needs with a Health Insurance Broker
Finding the right health insurance for you, your family or your business is not a decision to take lightly. With Sackett & Associates Insurance Services you can get advice about which health plans can meet your needs without hurting your wallet.
Contact the team at Sackett to learn more about how you could benefit from a health insurance broker.