WASHINGTON — Rising premiums and shaken faith among insurers have cast a cloud over sign-up season for President Barack Obama's health care law, and now it's crunch time again.
Tuesday is the deadline for millions of uninsured procrastinators to sign up in time for coverage to begin on Jan. 1. As the health insurance expansion enters its third year, their decisions are critical to its economic viability. A surge of younger, healthier customers could hold down premiums in a market that's struggling to grow.
"Medical costs of enrollees have been higher than expected and total enrollment remains low," said Caroline Pearson, a vice president at the consulting firm Avalere Health. "If participation is leveling off, then plans may be stuck with a risk pool that is not particularly balanced."
More than half of the health law's 23 nonprofit insurance cooperatives have folded, and even some major industry players have recently gone public with doubts.
There have been bumps with the health law, says business owner Rayna Collins of Lincoln, Nebraska, but overall she counts on it. She's surprised, however, that many people she knows have remained uninsured.
"It's heartbreaking to think that they could have affordable insurance," said Collins. "They think it's like going on welfare." One friend believed incorrectly that insurers could still turn down customers with pre-existing health conditions, a practice barred under the law.
See Tuesday's Arkansas Democrat-Gazette for full details.