Reprinted from HEALTH PLAN WEEK, the most reliable source of
objective business, financial and regulatory news of the health insurance
industry.
By Judy
Packer Tursman, Senior Reporter
May 22, 2017 Volume 27 Issue 18
CMS said May 15 it intends to propose rules, taking effect Jan. 1,
2018, that would allow small employers in states with federally facilitated
Small Business Health Options Program exchanges under the Affordable Care Act
(ACA) to enroll directly with insurers offering SHOP plans or through agents
and brokers. Employers would no longer enroll through HealthCare.gov’s portal.
(Separately, CMS said May 17 it is “streamlining” the federal
portal’s enrollment process for individual-market exchanges using
HealthCare.gov. In the upcoming 2018 open enrollment period, consumers using
direct-enrollment partners may complete their applications on the third-party
websites without being redirected to the federal portal, as has been done
previously.)
The federal portal would continue to determine companies’
eligibility for the Small Business Health Care Tax Credit, but would no longer
handle functions such as enrollment and processing premium payments, CMS said.
Employers signing up for SHOP coverage this year, which they can do until Nov.
15, would be given a grace period. They could continue using HealthCare.gov in
2018 for enrollment and premium payment, until their current plan year ends and
it’s time to renew.
CMS Administrator Seema Verma says the proposed changes will make
it easier for small employers to buy affordable coverage for workers and make SHOP
exchanges function better.
SHOP Exchanges ‘Never Caught On’
National health policy expert Tim Jost responds in a May 16 Health
Affairs blog that it is “far from obvious” why Verma’s expectations
would be met under CMS’s proposal. Small employers have always had the option
of enrolling directly with insurers for coverage, so this move doesn’t expand
employer options, he says.
The bottom line, according to Jost, emeritus professor at
Washington and Lee University School of Law, is that CMS’s proposal would
effectively end the ACA’s SHOP exchange for small businesses.
Chris Sloan, senior manager at Avalere Health, agrees that the
small-business program’s end seems nigh. But he says it may not matter much
since SHOP’s impact has been marginal at best.
“It never caught on. It was delayed for years, so the demand just
wasn’t there at all for SHOP,” Sloan tells AIS Health. “It honestly just looks
like they’re looking for a way to wind it down and then have those small
businesses currently using it go directly through agency brokers or insurers.”
Since small-business tax credits would be available for companies deemed
eligible that don’t use the online portal, he says, “It’s really just taking
away any reason to use the SHOP.”
Sloan notes that, while part of SHOP’s idea was access to the
small-business tax credit, “the tax credit wasn’t that much and not many
employers qualified for it.” To qualify, businesses must have no more than the
equivalent of 25 full-time workers, pay average annual wages below $50,000, and
cover at least 50% of the cost of health care coverage for their workers,
according to HealthCare.gov. The maximum credit goes to employers with 10 or
fewer full-time equivalent employees with average annual wages of $25,000 or
less.
Instead, large employers got involved in private health insurance
exchanges and small employers worked directly with brokers. Another aim of SHOP
was to lift some administrative burdens from small employers, helping
businesses set employer contribution limits as well as qualify for tax credits,
he says.
SHOP Covers 230,000 Individuals
CMS, in proposing the rules change, cited the Congressional Budget
Office (CBO)’s estimate that 4 million people nationwide would enroll in
coverage through SHOP exchanges by 2017. Instead, as of January 2017,
approximately 27,000 employers bought insurance through federally facilitated
and state-based SHOP exchanges, covering nearly 230,000 individuals across the
U.S.
Michael Capaldo, an employee benefits consultant in Coram, N.Y., a
state that runs its own ACA exchanges, notes that about 2,800 employers offer
coverage through New York’s Small Business Marketplace (SBM) and total
enrollment for employees and their dependents is below 12,000. “I would have to
say it’s not knocking the cover off the ball,” he says.
“New York has 19.8 million people, I think, and somewhere in the
neighborhood of 10 million are on Medicare or Medicaid,” Capaldo tells AIS
Health. “Out of approximately 10 million people that might have a run at this,
11,769 [SBM’s enrollment, according to the latest state exchange data] is a
small number, so it hasn’t been going well.”
CMS’s announced SHOP enrollment change “would have to be
encouraging to agents, brokers and employee benefits consultants in those
markets that will be moving in this direction,” he says. “But bear in mind, in
New York, agents, brokers and consultants had the ability to sell this product
all along.”
Attorney Chris Condeluci, principal of CC Law & Policy in
Washington, D.C., describes CMS’s announcement as “significant because it
signals that the Trump administration views HealthCare.gov as having some
utility, but only as a mechanism through which eligibility determinations
should be made.”
Condeluci, who worked for the Senate Finance Committee during the
ACA’s drafting, said the proposed SHOP change also signals that the Trump
administration feels that consumer aspects of exchanges — enrollment functions
— should be performed by agents and brokers, as well as insurance carriers,
through direct enrollment.
“In my opinion, if Republicans are ever able to get to their
‘replace world’ where a modified tax credit is available to consumers in the
individual market, I believe we will see a similar reliance on the existing ACA
exchange information technology (IT) infrastructure when it comes to
determining eligibility for the tax credits,” he said in a note May 17. “But we
will see a significant shift in how agents/brokers and insurance carriers can
engage consumers, and ultimately enroll consumers, in an individual market
plan.”
https://aishealth.com/archive/nhpw052217-03?utm_source=Real%20Magnet&utm_medium=email&utm_campaign=113038334
No comments:
Post a Comment