More than 500,000 new ACA signups during special enrollment period
That total includes only enrollees from the 36 states that have relied on the federal marketplace and not states with their own exchanges.
More than 500,000 Americans signed up for health insurance under the Affordable Care Act (ACA) in February and March, the Department of Health and Human Services (HHS) announced last week.
The signups were part of a special enrollment period (SEP) announced by the Biden Administration as it sought to address the ongoing COVID-19 pandemic and the economic fallout that accompanied the health crisis. HHS data shows that more than 528,000 Americans signed up for the ACA between Feb. 15 and March 31. That total includes only enrollees from the 36 states that have relied on the federal ACA marketplace, rather than creating a state ACA website.
Related: Biden urges uninsured Americans to enroll in ACA plans
The HHS announcement also outlined gains in enrollment among historically uninsured communities, including Black consumers and Americans near the poverty level. “Of applicants who identified a race, 17% identified as Black – compared to about 11% in both 2020 and 2019 during the same time period,” the agency said in a statement. “Among consumers requesting financial assistance, 41% report being at or slightly above the federal poverty level, compared to 38% in 2020 and 33% in 2019.”
More financial support available for ACA plans
The statement noted that under Biden’s plan, many Americans are eligible for additional financial assistance under the American Rescue Plan, the $1.9 trillion stimulus package passed by Congress in March. The ARP contained a number of changes to the ACA that made coverage more affordable by expanding government subsidies for enrollees.
HHS said that ACA premiums are expected to decrease by an average of $50-per-person, per month. Current enrollees in the ACA marketplaces can update their application and enrollment during the SEP to receive increased advance payments of the premium tax credit for 2021. According to an HHS fact sheet, “Four out of five enrollees will be able find a plan for $10 or less per month after premium tax credits, and over 50% will be able to find a Silver plan for $10 or less.”
Demand, and resources, have changed
The surge in enrollment comes as the health care landscape has changed with recent events. Obviously, the pandemic and the economic slump that came with it created significant demand for health insurance coverage, as millions of newly unemployed Americans sought to find health insurance options.
In addition, a new administration has changed the government’s approach to the ACA. The Trump administration was famously hostile toward the Obama-era program, and after failing to repeal it, made significant changes on the regulatory level—and perhaps more importantly, cut back on marketing and supporting the ACA exchanges.
For example, the Trump administration cut funding for the ACA Navigator program by 84%, dramatically reducing support for a program that helped consumers sign up for ACA plans. In contrast, the Biden Administration has committed to spending $50 million on outreach and education for the ACA marketplace, including $2.3 million in additional funding for Navigator programs.
The Biden administration has extended the SEP through Aug. 15, allowing Americans to sign up for ACA plans at any time during the next several months. “Every American deserves access to quality, affordable health care – especially as we fight back against the COVID-19 pandemic,” said HHS Secretary Xavier Becerra, when the extended enrollment period was announced in March. “Through this Special Enrollment Period, the Biden Administration is giving the American people the chance they need to find an affordable health care plan that works for them. The American Rescue Plan will bring costs down for millions of Americans, and I encourage consumers to visit HealthCare.gov and sign up for a plan before August 15.”
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