Despite the best efforts of the Centers for Medicare and Medicaid Services’ (CMS) to encourage participation in the federal Affordable Care Act (ACA) insurance exchange, more and more brokers and agents are pulling out of the marketplace.
According to a CMS report earlier this week, the number of agents and brokers participating in the ACA open enrollment for 2018 dropped 24.8% to 49,100 – by comparison, there were over 65,300 during open enrollment for 2017 coverage. CMS has also confirmed that since open enrollment for 2016 coverage, the number of registered agents and brokers has fallen by 38.3%.
The federal agency said in its statement that the drop in agent/broker participation could be due to several factors: health insurer exits from the exchanges, pricey member premiums, and limited commissions for those who enroll individuals in exchange plans. CMS also admitted that its strategy to encourage more shoppers to approach brokers, while giving brokers more tools to engage with their own customers, had failed to prevent this mass exit.
During the open enrollment period for 2018 coverage, the Trump administration allowed consumers to purchase an ACA-approved plan directly from a broker or an insurer’s website, completely bypassing the HealthCare.gov platform.
Modern Healthcare reported that 1.1 million people had dropped their 2018 health plans as of mid-March.
The agency said that while there are fewer agents and brokers participating in the ACA, they are still supporting about 42% of HealthCare.gov customers. CMS also promised that it would continue to streamline the HealthCare.gov platform for 2019, as well as giving brokers and agents new tools to better assist customers while reducing the need to visit the federal website or call center.
