The Obama administration estimates that 2.5 million more people could qualify for insurance subsidies if they bought plans on the Obamacare marketplaces instead of off them.
The federal subsidies to make coverage more affordable are available only for plans purchased through the marketplaces. Many people buy plans outside the marketplaces if they’re not eligible for subsidies anyway, but data released Tuesday by the Department of Health and Human Services shows some of those shoppers could be eligible for subsidies but just don’t know it.
Six of the largest states have sizeable populations of individual market shoppers who might be eligible for subsidies, HHS found. Those include California, Texas, Florida, North Carolina, Illinois and Pennsylvania, who each have more than 100,000 people enrolled in off-marketplace plans whose incomes might qualify them for the federal assistance.
Around 9 million Americans are covered by subsidized Obamacare plans, but the administration is hoping to ramp up the numbers during the law’s fourth enrollment season that begins Nov. 1.
“Today’s data show millions more Americans could benefit,” HHS Secretary Sylvia Burwell said in a statement. “We encourage everyone to check out their options on HealthCare.gov or their state marketplace and see if they qualify for financial assistance.”
The administration estimates of all the people who are eligible for marketplace coverage, including those buying off-marketplace plans, 70 percent have incomes qualifying them for subsidies. Some analysts have suggested that percentage may be lower, around 55 percent.
But the administration has been leaning heavily on the subsidies as a way to convince more Americans to buy coverage. While insurers are hiking premiums significantly, officials have pointed to the availability of federal assistance to reassure people they can still find affordable coverage. Of current marketplace enrollees, 85 percent are getting subsidies.
Burwell also announced Tuesday that HHS is making extra efforts to reach the uninsured where they are and strengthen its relationship with insurance agents and brokers.
