Even if you don’t have first-hand experience with healthcare.gov, you’ve certainly heard the news: the federal online health insurance marketplace put into place by the Affordable Care Act has been plagued by technical problems since it opened October 1.
“I have not been able to log on to quote for anyone,” said NAIFA member Debbie Pickett from Shreveport, Louisiana. “The site just keeps stalling out.”
Pickett is not alone. A New York Times article estimates that millions of people have had major difficulties logging on to the site. President Obama, himself, has called the problems “unacceptable.”
The glitches highlight a bigger flaw in the ACA that specifically affects poorer Americans. Government subsidies are available only to those purchasing plans through the government federal and state exchanges. This obviously limits the options of lower income consumers who cannot consider competitive plans outside the state exchanges (including private exchanges).
“Those hurt most by the glitches are the most needy,” said NAIFA President John Nichols. “Individuals who aren't eligible for subsidies can easily obtain coverage outside the government-run state exchanges on the existing market, which isn't filled with glitches and delays. Unfortunately, lower income Americans can only use their subsidies for coverage purchased inside the state exchanges. This is one of the reasons NAIFA argued that the subsidies should be available both inside and outside the exchanges.”
Even if the government can get the exchanges running more smoothly, it still makes sense for consumers to have the freedom to use their subsidies on plans purchased outside the exchanges.
“An off-exchange plan may provide more suitable coverage for a particular individual or family, or it may be cheaper than exchange-based alternatives,” Nichols added. “Yet consumers, if they need to take advantage of the subsidies, are locked into the limited choices on the exchanges.”
Additional News Coverage:
- “Seven Alternatives To HealthCare.gov, Obamacare's Glitchy Website,” The Huffington Post
- “Top 4 Obamacare Complaints,” CNN Money
- “Live blog and video as President Obama discusses troubled HealthCare.gov rollout,” Wall Street Journal’s MarketWatch
- NAIFA's ACA Resource Site