• Center on Health Equity and Access
  • Clinical
  • Health Care Cost
  • Health Care Delivery
  • Insurance
  • Policy
  • Technology
  • Value-Based Care

Low Penalty Not Enough for Some to Enroll in Exchanges

Article

The lackluster uptake of the special enrollment period for exchange coverage is driven, in part, because for most people individual mandate penalties are much lower than actual costs of coverage.

Earlier this week, HHS announced that 68,000 people enrolled in exchange coverage through HealthCare.gov as part of a special enrollment period for individuals paying the individual mandate penalty on their 2014 tax filings. That lackluster uptake of the special enrollment period is driven, in part, because for most people individual mandate penalties are much lower than actual costs of coverage.

Monthly health insurance premium costs are significantly greater than the individual mandate penalty for many potential exchange consumers in both 2014 and 2015, even after accounting for tax credit subsidies. However, individuals with incomes at or around the federal poverty level, $11,670 in 2015, will save money by purchasing insurance as opposed to paying the fine. Some individuals earning up to 200% of poverty will also save if they buy insurance, depending on their age and where they live.

Read more at Avalere Health: http://bit.ly/1AmkBhU

Related Videos
Amit Singal, MD, UT Southwestern Medical Center
Rashon Lane, PhD, MA
Dr Sophia Humphreys
Ryan Stice, PharmD
Leslie Fish, PharmD.
Ronesh Sinha, MD
Mila Felder, MD, FACEP, emergency physician and vice president for Well-Being for All Teammates, Advocate Health
Pat Van Burkleo
Pat Van Burkleo
Related Content
© 2024 MJH Life Sciences
AJMC®
All rights reserved.