FORT LAUDERDALE, Fla. - Federal health officials, after encouraging alternate signup methods amid the fumbled rollout of the online insurance website, are now urging counselors across the country to stop using paper applications to enroll people because of concerns those applications would not be processed in time.
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Interviews with enrollment counselors, insurance brokers and a government official who works with navigators in Illinois reveal the latest change in direction by President Barack Obama’s administration, which had been encouraging paper applications and other means because of problems with the federal website. Consumers must sign up for insurance under the federal health overhaul by Dec. 23 for their coverage to start in January.
“We received guidance from the feds recommending that folks apply online as opposed to paper,” said Mike Claffey, spokesman for the Illinois Department of Insurance.
After a conference call with federal health officials, Illinois health officials sent a memorandum Thursday to their 1,600 navigators saying there is no way to complete the enrollment process for all paper applications. The memorandum, which Claffey said was based on guidance from federal officials, said paper applications should be used only if other means aren’t available.
Federal health officials also discussed the issue during a conference call Wednesday with navigators and certified counselors in several states.
“They’ve said do not use paper applications because they won’t be able to process them anywhere near in time,” said John Foley, an attorney and certified counselor for Legal Aid Society of Palm Beach County who was on the call.
That contradicts what federal health officials told reporters during a national media call recently, during which they said there were no problems with paper applications.
“There is still time to do paper applications,” Julie Bataille, communications director for the Centers for Medicare and Medicaid Services, said on the call Wednesday.
A Centers for Medicare and Medicaid Services spokesman declined to comment directly on the issue Friday when asked whether officials discouraged navigators from using paper applications.
“With the recent fixes to the website, we are encouraging consumers to use healthcare.gov since it’s the quickest way to get coverage, but paper applications remain an option for consumers and navigators if they choose,” spokesman Aaron Albright said.
In early November, Obama encouraged paper applications as one of several alternatives to the federal website.
“I just want to remind everybody that they can still apply for coverage by phone, by mail, in person,” Obama said Nov. 4 in remarks about the Patient Protection and Affordable Care Act.
The paper application problem comes as insurance agents and brokers are dealing with a backlog of applications they can’t process because of problems with the federal website, including incomplete enrollment files sent electronically to insurance companies.
Paper applications seemed like a safe bet in early October as agents and navigators struggled with online applications. Once federal health officials receive paper applications, they check with other federal agencies to determine whether applicants are eligible for a subsidy to help pay for a portion of their health coverage. But the process, which includes verifying incomes and immigration status, is taking longer than expected.
“This timing concern is enormous,” said Jessica Waltman, senior vice president of government affairs for the National Association of Health Underwriters.
Her organization, which represents insurance brokers and agents, is in daily contact with Centers for Medicare and Medicaid Services on enrollment issues. In several recent conversations, Waltman said Centers for Medicare and Medicaid Services has expressed concerns about paper applications, but officials have stopped short of saying they can’t be used.
“We’ve gotten concerns from them saying, ‘I don’t know about the paper applications. That’s a really slow go, or I don’t know if that’s the best idea,’” she said.
Kelly Fristoe, an insurance agent in Wichita Falls, Texas, has submitted 25 paper applications since early October and hasn’t received a response from federal health officials yet.
“At this time, we are not using any paper applications,” he said.
Bataille, the spokesman for the Centers for Medicare and Medicaid Services, said last week that all paper applications received during October have been processed.
Meanwhile, Obama is bringing a former top aide with deep ties to Congress back to the White House to help get the health-care overhaul back on track.
Officials say Phil Schiliro, who as Obama’s top liaison to Capitol Hill helped push the Affordable Care Act through Congress, is taking on a short term assignment to help coordinate policy relating to the law.
He’ll work with the Department of Health and Human Services, the Centers for Medicare and Medicaid Services, other agencies, and members of Congress.
Information for this article was contributed by Darlene Superville of The Associated Press.
Front Section, Pages 5 on 12/08/2013