Biden Administration Extends Federal Special Enrollment Period

The Biden administration has extended the federal special enrollment period on the Affordable Care Act marketplace until August 15, US Department of Health and Human Services (HHS) announced.

“Every American deserves access to quality, affordable health care – especially as we fight back against the COVID-19 pandemic,” said HHS  Secretary Xavier Becerra, whom the Senate confirmed as the next Secretary on March 18, 2021 by a margin of one vote.

“Through this Special Enrollment Period, the Biden Administration is giving the American people the chance they need to find an affordable health care plan that works for them. The American Rescue Plan will bring costs down for millions of Americans, and I encourage consumers to visit HealthCare.gov and sign up for a plan before August 15.”

The extension affords Americans more time to enroll in the marketplace while premiums are lower.

The American Rescue Plan’s impacts on the marketplace will go into effect on April 1, 2021. This legislation, which passed in the Senate on March 6 by a margin of one vote, boosted Affordable Care Act marketplace subsidies as well as COBRA subsidies.

The press release estimated that one in four HealthCare.gov enrollees would be able to enroll in a plan with lower out-of-pocket healthcare spending while still paying the same premium or less. Savings could amount to $50 per enrollee per month. Policies could save $85 per policy per month.

Once enrolled on the federal health insurance marketplace, enrollees will receive coverage the following month.

It is possible for enrollees to acquire further savings on their healthcare coverage if they have collected unemployment compensation at any time during 2021. Starting in July, individuals who purchased Affordable Care Act marketplace coverage or changed or updated their current Affordable Care Act marketplace health plan may receive additional savings.

“This action provides new and current enrollees an additional three months to enroll or re-evaluate their coverage needs with increased tax credits available to reduce premiums,” the press release stated.

The government has established a couple of channels of assistance for potential enrollees. In order to discover whether they qualify for a lower premium, interested consumers can view 2021 health plans and prices on the federal health insurance marketplace. They can also call the Marketplace Call Center which offers guidance in 150 languages.

Additionally, an online federal platform can connect consumers to agents and brokers for assistance in understanding their healthcare coverage options.

These channels could prove to be critical resources for enrollees. A fifth of Americans use consumer assistance resources when applying for healthcare coverage, a Kaiser Family Foundation report revealed. In the past, consumers have turned to federally- and state-funded Navigators, brokers, and nonprofits for support.

A fact sheet on the extension noted that the changes will not impact employer-sponsored health plans’ affordability determinations.

“Employer-based coverage is still considered affordable for an employee and for any dependents to whom an offer extends if the amount the employee would pay for the lowest-cost plan that meets the minimum value standard and covers only the employee does not exceed a certain percentage of the employee’s household income,” the fact sheet stated.

“This is true even if the employee and other members of the household want to enroll in a plan that costs more and/or that covers dependents.”

The Biden administration initially established the special enrollment period to last from February 15 through May 15, 2021.

Within two weeks of opening up enrollment on Healthcare.gov, 200,000 Americans had enrolled in a health plan on the federal health insurance marketplace.

“Getting more Americans covered is an important part of the equation — but we also need to lower health costs,” President Joe Biden said at the time.