At least nine state-run marketplaces have seen a correlation between skyrocketing ACA premiums and enrollees downgrading to bronze plans, according to a March 9 analysis by Healthinsurance.org.
The organization is a privately-run website that offers health insurance educational resources for consumers. It includes a broker, physician and nurse as contributing writers.
Of the 11 states the site reviewed, California, Idaho, Maine, Maryland, New Jersey, Pennsylvania, Rhode Island, Vermont and Virginia all reported percentage increases in bronze plan enrollment. In Idaho and Maine, nearly 60% of enrollees opted for these plans. California, Maryland, New Jersey and Vermont have also tried offsetting costs with state-funded subsidies but still saw popularity with downgrades.
While Texas uses the federal marketplace, Oscar Health Vice President Breck Garrett and a Texas Association of Health Plans spokesperson previously told Becker’s they are observing a similar trend in the state.
“When people went to sign up for coverage, they looked at their options, and they saw the higher prices. Instead of dropping coverage altogether, they selected plans with lower benefits, so they went from gold down to bronze plans or silver down to bronze plans,” the TAHP spokesperson said. “The effect of that is that people just have less coverage, so they have more out-of-pocket costs when they do end up needing care.”
However, the Healthinsurance.org report identified New Mexico and Washington as seeing decreases in bronze plan enrollment. New Mexico used state funding to enable plan access for households with incomes of up to 400% of the federal poverty level, and it was the only state to completely backfill the loss of federal premium subsidies with its own money. Washington witnessed a migration to gold plans due to premium alignment, amplifying silver-loading dynamics.
