In an attempt to cut down on administrative paperwork and back office hours, the new plans under the Affordable Care Act will go up for Auto Renewal when they reach their expiration date for each consumer. The renewal is not as straight forward as you might think. Read this document to get in the know on what to expect when your plan comes up for its next cycle.

1. OBAMACARE AUTO RENEWALS MBAA © 2014
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The Effects of Automatic Renewal
on Obamacare Premiums
WHAT’S GOING ON?

2. OBAMACARE AUTO RENEWALS MBAA © 2014
Plans to re-enroll individuals and
families into the same health insurance
plans they subscribed to through the
federal exchange last year have been
made. This may come to the dismay of
many who overlooked the option to opt
out, who do not plan to keep the same
insurance plan they had last year, or
who know their subsidy qualification
status has changed. The Obama
administration, however, seems to
have cleverly answered these issues
with less than four months left before
open enrollment begins.
"
As we inch our way toward Obamacare’s second open-enrollment period, those who
purchased a health insurance plan from the federal marketplace without deliberately opting out
of the automatic renewal option should stay abreast of all of their health insurance enrollment
options. Once open enrollment is over, individuals and families will be stuck with their plan
whether they like it or not.
"Sylvia Mathews Burwell, Department of Health and Human Services Secretary said, "As we
plan for open enrollment in year two and continue to build a sustainable long-term system, we
are committed to simplifying the experience for consumers by allowing auto-enrollment."
"
Automatic health insurance plan renewal will occur for anyone who does not go in and change
it themselves so long as they remain qualified and the plan they originally had is still available.
As it stands, about 95 percent of those who enrolled in an Obamacare insurance plan on the
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As we plan for open enrollment in year two
and continue to build a sustainable long-term
system, we are committed to simplifying the
experience for consumers by allowing auto-
enrollment.
What’s Happening with Renewals?
“

3. OBAMACARE AUTO RENEWALS MBAA © 2014
federal exchange are
considered eligible for
the same plan they had
last year and will not
have to do anything in
order to stay right
where they are.
"
If they choose to
change plans, however,
they can do so during
open enrollment, which
begins November 15,
2014 and remains open
until February 15, 2015.
"
One of the Obama
administration’s ideas
b e h i n d a u t o m a t i c
renewal is to reflect the efficient way in which an employer-sponsored healthcare plan
seemingly renews itself. While this may sound like great news to those who do want to stay
put, or for those who weathered the infamous technical meltdown earlier on, this could actually
cause premium increases for many consumers who do not switch their plan if premium rates
spike as projected.
"
Supporters of Obamacare are pleased with auto renewal as they previously demonstrated
concern about whether or not enrollees would go back to Healthcare.gov and re-enroll
themselves for 2015.
"
Medicaid enrollment has had similar issues, and supporters feared that not only would they be
burdened with trying to sign up more people for Obamacare who are currently uninsured, they
would also have to try reaching current customers to remind them to renew their policy.
"
Allowing automatic renewal for consumers’ health plans isn’t all they’re putting on autopilot.
Understandably, people want to know that their subsidies won’t be dropped by oversight or
glitches.
"
Furthermore, a concern among Obamacare supporters is that people would lose their
subsidies if their eligibility couldn’t be automatically renewed. This fear is likely based on the
idea that some may not bother going through the trouble of providing the same income
information they did when they initially enrolled.
"
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How Does Auto Renewal Affect Subsidies?

4. OBAMACARE AUTO RENEWALS MBAA © 2014
The good news is that about 90 percent of those who purchased a health insurance plan on
HealthCare.gov received subsidies due to their income falling between one and four times the
federal poverty level, and these subsidies are available for automatic renewal. As a result, many
won’t have to jump through the same hoops they did when they initially applied. This helps the
consumer and the federal exchange streamline re-enrollment in a major way.
"
In a press release, HHS stated that "Consumers in the federally-facilitated marketplace will
receive notices from the marketplace informing them how to update their information to get a
tailored and updated tax credit that keeps up with any income changes."
"
Officials recently disclosed that an investigation of financial records indicated about 95 percent
of enrollees from the federal exchange will be renewed not only for health insurance but for
subsidies as well and will automatically receive the payment assistance that they received last
year.
"
Those who do not go back to the website to report income changes will have their subsidies
renewed based solely on the records that the government has concerning their income.
"
Officials have said that even if a consumer’s eligibility for subsidies changes, they will still be
re-enrolled in the plan they opted for last year unless they previously chose to opt out of
automatic renewal.
"
If a person no longer qualifies for the subsidies they qualified for last year, switching plans
during open enrollment may be advisable. Otherwise, they will be automatically re-enrolled in
the same health insurance plan they had last year - regardless of the cost.
"
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5. OBAMACARE AUTO RENEWALS MBAA © 2014
"
The ability to automatically re-enroll in both health insurance plans and subsidies is only
applicable to those enrollees on the federal exchange. Fifteen healthcare exchanges that are
run by their individual states do not have this option.
"
States that run their own marketplaces will be able to call some of the shots for their renewals,
which includes methods of obtaining coverage for next year. The state exchanges have the
ability to provide automatic renewal for insurance plans either by offering the renewal of health
plans only, offering the renewal of subsidies only, or creating their own system that must be
taken through an approval process by the Centers for Medicare and Medicaid Services.
"
The Obama administration clearly sees automatic renewal as a way to minimize technical
challenges with the website and resulting frustration. Obviously, the automatic renewal of
millions of plans will put a sizeable dent in the amount of traffic on the federal exchange when
open enrollment begins in November, and will likely result in a much more streamlined
experience for those who must use it.
"
Ron Pollack of Families USA said, "I think this was the best choice that could be made, and it
will enormously reduce churning that was experienced in the past."
"
Based on the information provided and analyses completed, it appears that without millions of
motivated bargain shoppers leaving higher-cost plans for less expensive options, consumers
could see extreme hikes in premiums and out-of-pocket costs.
"
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State Exchanges Lacking Subsidies
Technology Perks
I think this was the best choice that could be
made, and it will enormously reduce churning
that was experienced in the past.
- Ron Pollack
“

6. OBAMACARE AUTO RENEWALS MBAA © 2014
It could, however, go the other way. If consumers start to get a taste of equal health insurance
plans for less money, larger companies may be forced to be more competitive with their
pricing.
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