New Data From eHealth Price Index Points to Off-Exchange Enrollment Trends as Open Enrollment Draws to a Close
The company's data show that eHealth shoppers since
"This is a moment of truth for the Affordable Care Act," said eHealth CEO and Chairman
"We are also now enrolling consumers manually, via telephone, in subsidy-eligible health plans in the 36 states supported by healthcare.gov, as well as in
Enrolling Younger Americans
Health insurance enrollment by younger consumers in the 18-34-year-old age range is seen as key to the overall success of the Affordable Care Act. By comparing eHealth Price Index data from the first half of the nationwide open enrollment period with a snapshot of eHealth Price Index data from the second half of the nationwide open enrollment period to date, the company reports that more of the millennial generation is turning to eHealth to find coverage:
Between October 1 and December 31, 2013 , shoppers between the ages of 18 and 34 years old accounted for 39% of persons selecting off-exchange plans through eHealth1.Between January 1 and March 23, 2014 , shoppers between the ages of 18 and 34 years old accounted for 45% of persons selecting off-exchange plans through eHealth2.
Reaching the Previously Uninsured
In a separate study, eHealth asked shoppers about their insurance status prior to visiting eHealth. Based on the responses, the company reports that a higher percentage of shoppers in the second half of the open enrollment period were previously uninsured when compared with shoppers in the first half of the open enrollment period3:
Between October 1 and December 31, 2013 , one-third (34%) of eHealth shoppers participating in the poll identified themselves as uninsured.Between January 1 and March 23, 2014 , half (51%) of eHealth shoppers who participated in the poll identified themselves as uninsured.
Catastrophic Plans More Popular
The Affordable Care Act categorizes major medical individual and family health insurance plans into "metallic-level" tiers -- bronze, silver, gold, platinum -- based on the amount of cost-sharing borne by the policy holder for covered medical services. It also created "catastrophic" plans specifically designed for persons under age 30. In an analysis of its off-exchange plan enrollments, eHealth reports that it is seeing an increase in the popularity of catastrophic plans among shoppers in the last three months of the nationwide open enrollment period:
Between October 1 and December 31, 2013 , bronze plans were the most popular, accounting for 42% of all plans selected by shoppers. Catastrophic plans accounted for 10% of all plans selected1.- Between
January 1 , andMarch 23, 2014 , bronze plans were still the most popular choice (43% of all plans selected), but the popularity of catastrophic plans increased to 14% of all plans selected2.
Changing Costs of Health Insurance Plans Selected by Shoppers
Since the beginning of the second half of the nationwide open enrollment period, eHealth's Price Index data illustrates a movement towards younger applicants and towards shoppers selecting plans with lower monthly premiums4.
Among individuals shopping for health insurance, eHealth's Price Index shows that:
- On
January 1, 2014 , the average premium for individual plans selected by eHealth shoppers was$290 per month (compared to$197 per month inFebruary 2013 5), and the average age of individual applicants was 39. - By
March 23, 2014 , the average premium for individual plans selected by eHealth shoppers was$261 per month (a decrease of 10% sinceJanuary 1 ) and the average age of individual applicants was 36.
Among families shopping for health insurance, eHealth's Price Index shows that:
- On
January 1, 2014 , the average premium for family plans selected by eHealth shoppers was$701 per month (compared to$426 per month inFebruary 2013 5), with an average of three persons per family group. - By
March 23, 2014 , the average premium for family plans selected by eHealth shoppers was$654 per month (a 7% decrease sinceJanuary 1 ), with an average of three persons per family group.
Spotlight on Premiums in
As they have at the national level, average monthly premiums for individual plans selected by eHealth customers in select states surveyed have also decreased in the first quarter of 2014 to date when compared to the fourth quarter of 2013. In the states of
In
Between October 1 and December 31, 2013 , the average premium for 2014 individual plans selected by eHealth customers inCalifornia was$331 per month1.Between January 1 and March 23, 2014 , the average premium for individual plans selected by eHealth customers inCalifornia was$298 per month2 -- a 10% decrease compared to the October -December 2013 period.
In
Between October 1 and December 31, 2013 , the average premium for 2014 individual plans selected by eHealth customers inIllinois was$262 per month1.Between January 1 and March 23, 2014 , the average premium for individual plans selected by eHealth customers inIllinois was$222 per month2 -- a 15% decrease compared to the October -December 2013 period.
In
Between October 1 and December 31, 2013 , the average premium for 2014 individual plans selected by eHealth customers inFlorida was$325 per month1.Between January 1 and March 23, 2014 , the average premium for individual plans selected by eHealth customers inFlorida was$271 per month2 -- a 17% decrease compared to the October -December 2013 period.
Open Enrollment Deadline One Week Away
The first-ever nationwide open enrollment period for individual and family health insurance, established by the Affordable Care Act, is due to come to a close after
Notes:
1 As reported in the eHealth Price Index Report for October -
2 Preliminary Q1 2014 figures based on the same methodology employed for figures reported in the eHealth Price Index Report for October -
3 According to an ongoing, voluntary survey of eHealth customers.
4 Figures reported in this section are available through the online eHealth Price Index.
5 According to eHealth's Cost and Benefits report published in
About eHealth
For more health insurance news and information, visit the eHealth consumer blog: Get Smart - Get Covered or visit eHealth's Affordable Care Act Resource Center at www.eHealth.com/affordable-care-act.
Forward Looking Statements
This press release contains forward-looking statements, including statements regarding the timing of the end of the open enrollment period for individual and family health insurance and its impact. These forward-looking statements involve certain risks and uncertainties that could cause actual results to differ materially from those indicated in such forward-looking statements, including, but not limited to, the potential changes to the Affordable Care Act and related regulations and rules. Other risks and uncertainties that can affect actual results are included under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in eHealth's Annual Report on Form 10-K for the year ended
For media inquiries, please contact:
(916) 207-7674
sande.drew@ehealth.com
(650) 210-3149
brian.mast@ehealth.com
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