Obamacare sign-ups on the federal website dropped slightly this year, the Trump administration reported Wednesday, with officials saying an improving economy may have cut into enrollments.
Roughly 8.5 million people selected plans or were automatically re-enrolled on HealthCare.gov, which is the portal for residents in most states. That’s 300,000 fewer than the last sign-up season a year ago.
But the program is still drawing a core base of customers, analysts noted, and the Centers for Medicare and Medicaid Services said the numbers prove fears of Trump-driven “sabotage” of the health law were false.
“This administration has taken strong steps to promote a more competitive, stable health insurance market, and these steady enrollment numbers are yet another sign that the administration’s efforts are working,” CMS Administrator Seema Verma said. “With the lowest unemployment rate in 50 years, it’s possible that more Americans have employer-based coverage and don’t need exchange plans.”
Her agency said 2 million additional people have jobs in the 39 states served by HealthCare.gov, and 100,000 Virginians who currently buy plans through the exchange will be newly eligible for Medicaid next year, so they probably didn’t sign up either.
Ms. Verma said others who remained on the sidelines did so because they feel prices have gotten too high.
“Many Americans don’t qualify for subsidies on HealthCare.gov and remain priced out of the insurance market,” she said. “At the end of the day, lower premiums will lead to increased enrollment.”
A full picture of 2019 Obamacare enrollments is still to come, with some states that run their own exchanges still allowing sign-ups.
Democrats had feared a major dent to the numbers after President Trump slashed funding for program outreach and in-person enrollment assistance, and expanded access to cheaper, skimpier health plans outside of Obamacare.
The GOP also used its tax-cut bill to gut the “individual mandate” penalty for shirking insurance.
Analysts said the fact that enrollments didn’t collapse is a sign the mandate was not the prod Obamacare’s supporters thought it would be. Instead, federal income-based subsidies remain the key draw.
“The market definitely still has some structural issues including high premiums and limited choice in some states, but it appears we’ve reached a plateau with this market,” said Chris Sloan, a director at Avalere Health, a D.C.-based consultancy. “Enrollment has been relatively flat since 2017 and all the various political upheaval, regulatory changes, higher premiums, and the repeal of the individual mandate haven’t led to any substantial change in enrollment.”
Indeed, the markets appeared slightly healthier this time around, with premiums falling in some places, after insurers overpriced in previous rounds. Also, insurers didn’t drop out of the law’s marketplace, as they had in the past. In fact, new plans came in.
The federal sign-up period was interrupted by late drama.
U.S. District Judge Reed O’Connor, presiding in Texas, ruled Obamacare to be unconstitutional late Friday, the eve of the deadline.
Early numbers suggest that didn’t dent last-minute enrollment. But it has reignited the battle on Capitol Hill over what comes next. Mr. Trump said it should pave the way for a bipartisan deal.
Democrats, though, say they want to rescue Obamacare by defending it as Judge O’Connor’s decision moves to higher courts.
Sen. Joe Manchin III, West Virginia Democrat, tried to force action on a resolution Wednesday, stating that Congress never intended to scrap the rest of the Affordable Care Act when it zeroed out the mandate penalty.
That could undercut part of Judge O’Connor’s reasoning.
Sen. John Barrasso, Wyoming Republican, objected to Mr. Manchin’s bid, killing Democrats’ attempt to pass the resolution by unanimous consent.
Mr. Barrasso said the measure is unnecessary because Obamacare will remain the law of the land during the appeal, which could land before the Supreme Court, and Congress will take steps to shield sicker Americans.
• Tom Howell Jr. can be reached at thowell@washingtontimes.com.
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