Washington exchange enrollment appears to have leveled off

By: Emily Makings
12:00 am
June 9, 2016

The Washington Health Benefit Exchange has released a report this week showing enrollment data from the most recent open enrollment period (which ran from Nov. 1, 2015 to Jan. 31, 2016). According to the report, 169,182 qualified (private) health plans (QHP) were purchased. Additionally, 1,522,342 were enrolled in Washington Apple Health (Medicaid) through the Exchange in March.

As I noted in February, the Exchange initially said that during the open enrollment period, "more than 200,000 Washingtonians selected a Qualified Health Plan." The lower number reported this week reflects plans that have actually been paid for.

The chart shows enrollment figures at the end of each of the three open enrollment periods that have occurred, plus enrollment after a special enrollment period that ran from Feb. 17, 2015 to April 17, 2015 (this special period occurred because individuals may have become aware of the tax penalty for not having health insurance while preparing their taxes last year). It certainly looks like QHP enrollment has leveled off; the sweet spot appears to be in the 160,000 to 170,000 range.

The Exchange writes, "Fewer customers are relying on subsidies. Nearly 52,000 customers enrolled in non-subsidized Qualified Health Plans — a 58-percent increase over the previous year."

Still, of the QHP enrollees, 69 percent (117,436) are eligible for a tax credit that lowers monthly premiums. Also, 70,098 enrollees received cost-sharing reductions (CSR).

The federal tax credit and cost sharing reduction program are two subsidies provided for certain enrollees under the Affordable Care Act. As Brian Blase of George Mason University's Mercatus Center writes

The premium tax credits reduce people’s out-of-pocket premiums and are generally available to people with income between 100% and 400% of the federal poverty level (FPL) . . . . The CSR payments are additional subsidies for people with income below 250% of the FPL. These payments effectively make plans more generous by reducing deductibles, cost-sharing amounts, and out-of-pocket limits.

But the CSR payments may not be available in the future. A federal judge ruled last month that the payments are illegal since Congress didn't appropriate the funds.

Meanwhile, the Seattle Times reports that health insurance rates for individual plans in Washington may increase by 13.5 percent next year, on average.

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