15 Percent of Obamacare’s Second Season Enrollees Were Gone by June 30

Obamacare’s second enrollment season closed around the end of February, with 11.7 million signed up. By March 31, that had dropped to 10.2 million who actually paid their first month’s premium. New data from the administration report that number dropped further to 9.9 million by June 30.

What is also notable is that the entire drop of paid enrollees occurred in states using the federal exchange, not state-based exchanges (for which enrolment stayed at 2.7 million). There is no word on whether the drop-outs got employer-based coverage, descended into Medicaid, or stayed uninsured. 423,000 were dropped by the administration because of lack of documentation of citizenship or immigration status.

A stable market? Not quite, I guess.

Overall, 84 percent of enrollees have their premiums artificially lowered by tax credits payed to their health plans. The average discount is $270 per month. Further, 56 percent were getting reductions of out-of-pocket costs through taxpayer transfers to health insurers.

Washington, DC, is unique. Only 10 percent of its 14,637 exchange enrollees are receiving discounted premiums, and fewer than three percent reductions of out-of-pocket costs. This indicates the exchange (DC Link) is dominated by Congressional staff. However, we need not cry for them, because the administration is using taxpayer money to pay their costs through the back door – with no legal basis.


Comments (8)

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  1. Brian Williams. says:

    In a free market, losing that many customers would certainly force a company to radically change their business practices. Someone would probably be fired.

  2. Devon Herrick says:

    I thought I read somewhere that one-quarter were gone. I was surprised because 17% was the estimate for late-season enrollees. Something like 84% of enrollees get subsidies worth a couple hundred a month. I wonder if the dropouts were those who didn’t get a subsidy? Or was it those who got a subsidy but didn’t think their ($4,000) health insurance was even worth the paltry $100 per month they were expected to pay.

  3. Don Levit says:

    A twenty five turnover in one year
    Insurers average about 50 percent turnover in year one for individual policies
    Don Levit

  4. Don Levit says:

    I meant 25 percent turnover in the Exchanges
    Don Levit

    • Rich Berger says:

      Assuming your turnover numbers are correct, I would expect those in the individual
      Market to switch insurers or get employer coverage. In the Obamacare exchanges I don’t expect the same thing.

  5. Ron Greiner says:

    OK, after tax credits you owe $9 a month but you don’t have a checking account so how are you going to pay your $9?