As more insurers around the country propose steep Obamacare rate increases, the Obama administration says it is working to tamp down costs in a number of different ways.
In an effort to attract healthier customers to the insurance marketplaces created under President Obama’s healthcare law, the Department of Health and Human Services said it’s trying to curb abuse of short-term insurance plans, improve the risk adjustment program and help consumers over 65 transition to Medicare.
The agency said it also is fully implementing safeguards to ensure people don’t enroll off-season simply because they’re sick and to cut down on data mismatching problems when people sign up.
Together, the actions will “strengthen” the marketplaces’ risk pools, HHS said Wednesday.
“Over the past several months, HHS has taken a series of actions to strengthen the marketplace risk pool, limit upward pressure on rates, and ensure a strong marketplace for the long term,” a fact sheet released by the agency said.
“We believe those actions are bringing positive results. As part of our continued commitment to the long-term strength of the marketplace, we are announcing new measures to ensure that the marketplace continues to provide affordable coverage for millions of Americans.”
The announcement comes on the heels of proposals by major health insurers selling plans in the Obamacare marketplaces to raise rates to cut their losses. The marketplaces have attracted a larger proportion of sicker customers, causing insurers to lose money in the individual market.
HHS said it will announce three more steps later this month, all aimed at strengthening the risk pool by spreading the costs of care over a more diverse mix of enrollees, working with insurers and states to improve coverage options and stepping up its outreach efforts to young adults, who tend to be healthier.
