This post supports the ending of enrollment periods for health insurance, just like for car insurance. We as consumers should be able to shop around for a better deal or a different deal all year long, just as we can for car insurance. The antiquated policy discourages real competition among insurance companies by allowing them to LOCK IN individuals into a particular policy for a full year.
This week, more people who tried to enroll in Obamacare and were met by insufficient technology or other issues that prevented that enrollment can, found out they’d be “allowed” in many instances to enroll in spite of the “March deadline,” arbitrarily created by Obamacare. During these, “Special enrollment periods,” individuals can enroll in a health insurance plan even though enrollment dates have passed.
The question really is, why does Obamacare perpetuate the outdated idea of enrollment periods as all? Like so many other provisions of Obamacare, enrollment periods are merely a codification of practices that didn’t work or are no longer necessary in today’s healthcare system that quite frankly work against consumers.
Exceptions to enrollment periods, often termed “Special enrollment periods,” which means you can enroll in health insurance plans in spite of having missed “enrollment season,” have been around for decades when certain circumstances occur, such as employment, family and even changes that occur as a result of moving.
So, why did Obamacare codify enrollment periods? It’s about money and it reduces the alleged competition that would allegedly lower insurance premiums, because locking you into a health insurance plan for a year works only for the benefit of the insurance companies, whether that’s private or public health insurance.
We should be moving away from enrollment periods, not codifying their legitimacy. Obamacare makes this shift more urgent in order to protect consumers and their wallets (remember? Patient PROTECTION and AFFORDABLE care Act.)
PROMOTE COMPETITION BY SUPPORTING THE END OF ENROLLMENT PERIODS: There is NO reason to perpetuate this antiquated cat-and-mouse game of getting in under some artificially set deadline that does not benefit consumers. Just like car insurance, consumers should be able to compare health insurance plans all year long, should be able to switch those plans even up to monthly if they can find a better deal.
IRS: 26 US CODE SECTION 5000A talks about the REQUIREMENT for consumers to maintain minimum essential coverage (health insurance) or face a penalty for any month missed (b). But it also provides that
“ (e) Exemptions
No penalty shall be imposed under subsection (a) with respect to— …
(4) Months during short coverage gaps Any month the last day of which occurred during a period in which the applicable individual was not covered by minimum essential coverage for a continuous period of less than 3 months.”
While you should consult with someone before banking on this exemption, it seems at least arguable that individuals can CHOOSE not to have coverage for up to less than three months during the year (in a row, and not more than during one less than three month period in a year) and NOT face any penalty, including the prorated amounts discussed in the section for any month of non-coverage.
Consumers should not be constrained by enrollment periods in health insurance, it discourages real competition by creating an artificial deadline that locks consumers in for a year.
