Shopping around may alleviate sticker shock during Obamacare enrollment - penalty for no insurance m
By Amy Yurkanin | ayurkanin@al.com AL.com Birmingham, AL
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Some customers with the most popular silver plan from Blue Cross Blue Shield of Alabama could pay nearly twice as much for insurance coverage next year, according to premiums posted on Healthcare.gov.
But if they switch to a silver plan offered by another company, those same customers could cut their costs. The lowest cost silver plan offered by Blue Cross would cost about $124 a month after tax credits for a person making $20,000 a year. Silver plans offered by Humana and UnitedHealthcare cost about $83 a month.
Of course, all plans have different deductibles and co-payments – so annual health care expenses could vary widely from person to person. Healthcare.gov has a feature that allows customers to compare up to three plans at once.
Blue Cross Blue Shield of Alabama increased premiums for individual plans offered on the healthcare exchange by an average of 28 percent. The insurer stopped offering its platinum plan and one of its gold-level plans this year. According to a statement, the insurer has consistently lost money on its Obamacare plans.
"Thus far this year, paid claims for these plans have already exceeded customer premiums, and our company projects to lose over $100 million on our ACA-compliant individual plans in 2015," read a statement released by Blue Cross spokeswoman Koko Mackin.
More insurers are offering more plans than ever before in Alabama, said Jim Carnes, policy director for Arise Citizens' Policy Project. The health insurance market in Alabama has long been dominated by Blue Cross, which covers about 90 percent of those with insurance.
"It's a new story for Alabama because we've been a one-show state for a while," Carnes said. "But now we have some competition in this area."
The U.S. Department of Health and Human Services released data last month showing that customers who switch plans on the exchange usually save money. In Alabama, the average consumer who switched plans with the same amount of coverage saved $16 a month, according to the department.
Blue Cross Blue Shield of Alabama has a large network of affiliated hospitals and providers. Navigator Doug Hoffman said Humana and UnitedHealthcare have many of the same doctors in their network, but encourages customers to call their current doctor's office before switching.
Customers who want guidance during open enrollment can attend an event with navigators. Starting this year, they can also call 2-1-1 to make an appointment with a navigator.
Carnes said he expects the number of new enrollees to decline this year compared to the first two years of enrollment. Navigators are trying to reach out to those who haven't signed up for health insurance by reminding them that they will face penalties of 2.5 percent of their income or $695 per person – whichever is more.
That's up substantially from penalties of 2 percent or $325 per person in 2015.
People who fall into the "Medicaid gap," who don't make enough to qualify for a tax credit and were supposed to be covered by Medicaid expansion, won't face penalties.
"We just want to remind people that this is the new system and that you have to have health coverage or you pay a penalty," Carnes said. "Any one of us is just one accident away from needing health care. Insurance is a back-up plan for good health."