Health Care Plans Attracting More Older, Less Healthy People
By ROBERT PEAR and MICHAEL D. SHEAR
JAN. 13, 2014 - New York Times
WASHINGTON — People signing up for
health insurance through the Affordable Care Actfs federal and state
marketplaces tend to be older and potentially less healthy, officials said
Monday, a demographic mix that could cause premiums to rise in the future if the
pattern persists.
But officials expressed optimism
that more young people will sign up in the months ahead, calling it gsolid,
solid newsh for the health care law. They said demand for insurance through the
marketplaces was increasing sharply across all age groups and they said youth
outreach will become more aggressive in the months ahead.
gWefre pleased to see such a strong
response and heavy demand,h said Kathleen Sebelius, the secretary of health and
human services. gAmong young adults, the momentum was particularly
strong.h
Officials for the first time
released basic demographic information about the people signing up for
insurance. Of those who signed up in the first three months, 55 percent are age
45 to 64, officials said. Only 24 percent of those choosing a health insurance
plan are 18 to 34, a group that is usually healthier and needs fewer costly
medical services. People 55 to 64 – just below the age at which people qualify
for Medicare -- represented the largest group, at 33 percent.
Over all, officials said that 2.2
million people had signed up by Dec. 28 for health insurance through
HealthCare.gov and the state-based websites. Administration officials have
previously said they hope to see seven million people enrolled in private health
plans through the federal and state exchanges by March 31.
Of those who signed up, about 54
percent are women and 46 percent are men. Nearly 80 percent of those who
selected a plan qualified for federal subsidies to reduce their premiums,
officials said.
Federal officials do not know how
many of the people selecting plans were previously uninsured, how many were
African-American or Hispanic, or how many have paid premiums. Consumers are
required to pay their share before coverage takes effect.
The age breakdown was the most
highly anticipated data being released because of what it could say about the
health of those who will be insured. Under the law, insurers can no longer deny
coverage or charge higher premiums because of a personfs medical history or
pre-existing conditions. As a result, White House and health policy experts have
repeatedly said that insurers need to sign up large numbers of younger people to
balance the financial risks of covering older Americans who require more medical
care.
Officials on Monday said they were
basically pleased with the percentage of young people and said it was consistent
with their expectations and with the experience in Massachusetts, which put in
place a similar kind of public health insurance exchange.
gWe think that more and more young
people are going to sign up as time goes by,h said Gary Cohen, the director of
the Center for Consumer Information and Insurance Oversight at the Centers for
Medicare and Medicaid Services.
Republicans quickly jumped on the
information as evidence that the administration was still short of its goals for
the health care program. Brendan Buck, a spokesman for Speaker John A. Boehner,
predicted that insurance premiums will rise.
gTherefs no way to spin it: youth
enrollment has been a bust so far,h Mr. Buck said. gWhen they see that Obamacare
offers high costs for limited access to doctors – if the enrollment goes through
at all – itfs no surprise that young people arenft rushing to sign up.h
Larry Levitt, a senior vice
president of the Kaiser Family Foundation, has said that gthe mix of enrollment
is much more important than the total number.h
gIf you assume that sicker
individuals are likely to come in first, then a smaller pool is likely to be a
sicker pool,h Mr. Levitt said. gThe best guarantee of a diverse pool is a big
pool, because that means you are probably reaching younger and healthier
people.h
Mr. Levitt said that people
enrolling early included some with the greatest needs: people who had been
locked out of the individual insurance market because of serious illnesses and
those coming from federal and state programs for people with pre-existing
conditions.
Robert E. Zirkelbach, a spokesman
for Americafs Health Insurance Plans, a trade group, said gitfs too early to
knowh if the enrollment of younger and healthier people was adequate to keep
premiums stable in coming years. Insurers will need to see enrollment numbers
for the full six-month period, he said.
Many people who bought insurance
on their own have received notices saying their policies were being canceled or
discontinued because the policies did not comply with coverage requirements of
the new health care law. Those expecting high medical bills had the strongest
motivation to overcome the obstacles to buying insurance on the federal
exchange.
Mike Hash, the director of the
Office of Health Reform at the Health and Human Services Department, said that
premiums will be determined in part by the demographic mix of those insured in
each state. He said that the current trends gare suggestive of an appropriate
mixh by the end of the enrollment period.
gWe need to continue and
accelerate our outreach efforts. Thatfs what we are doing,h Mr. Hash said. gWe
are confident based on the results we have now that we will have an appropriate
mix of people.h
In December, for the first time,
the number of people selecting plans in the federal exchange exceeded the number
signing up through state exchanges.
For the first half of the
enrollment period, through December, the federal exchange, which serves 36
states with about two-thirds of the nationfs population, accounted for 56
percent of all the people selecting plans. The other 44 percent signed up in
state exchanges.