Fewer policies will be available through the federal health insurance gateway
Those seeking out health insurance coverage through the HealthCare.gov site may find that fewer policies are available to them this year. HealthCare.gov, the federal insurance exchange gateway, will begin offering services in November, with consumers being able to enroll for coverage and find policies that they are interested in. The federal government has been working to improve the site for some time in order to ensure that consumers will be able to find the coverage that they need.
Average number of policies will shrink by 12% overall
The number of health insurance plans that will be offered through HealthCare.gov is shrinking by approximately 12%. The number of PPO health care plans sold through the federal exchange is decreasing by 40%. These policies had proven quite popular among consumers because of their flexibility concerning coverage for medical services. Instead, there will be a significant increase in the availability of HMO plans, which may be more expensive for consumers that end up using their insurance coverage.
Insurers are facing greater financial pressure due to federal law
The lack of policies being offered through HealthCare.gov may be the result of the financial impact that insurance companies are seeing as a result of the Affordable Care Act. Per federal law, all U.S. citizens are requires to have health insurance coverage, and insurers are no longer able to deny coverage to those with pre-existing conditions. As more people acquire coverage, they are using their policies more frequently. This translates into significant financial losses for insurers as they are seeing higher levels of claims payouts. Other provisions of the federal law are also having a financial impact on insurers, which has lead to higher insurance premiums.
Numerous policies will still be available to consumers
Consumers are likely to be able to find the health insurance policies that they need through both state-run and federal exchanges, but they will have fewer options. A lack of options may push consumers toward more expensive policies, as they will not be able to find policies that are as affordable as those that were available in the past.