Government Starts New Campaign For Obamacare Signups

Date: June 22, 2016 Last Edit: June 23, 2016

CMS Campaign Plans To Urge 18-34 Year Olds To Get Health Insurance

In an effort to combat poor enrollment numbers among 18-34 year olds, the Obama Administration is making a new campaign to encourage Obamacare enrollment. USA Today reports that the Centers for Medicare and Medicaid Services said it plans to increase “efforts to get uninsured young adults to sign up for health coverage” under Obamacare. Data have indicated that this population doesn’t enroll in health insurance because young adults believe they do not need insurance. CMS intends “to target consumers aged 18 to 34 in ways officials hope will better reach younger people and resonate with them.” The Washington Times reports the Obama Administration intends to work with the IRS to target young adults. Those who paid the ACA fine for not having coverage “can expect to receive a paper notice that explains their coverage options on the law’s web-based exchanges.” In addition, HHS said it will “target consumers who can stay on their parents’ insurance until age 25, a key pillar of Obamacare, but must fend for themselves upon turning 26.”

The move is designed to offset the mounting costs for insurers under Obamacare. The AP reports insurers need young, healthy people to enroll in Obamacare plans “to balance the costs of caring for older, sicker adults, who signed up in droves.” Data indicate about 11.4 million millennials could have enrolled in Obamacare plans in 2013, but just 28 percent of 2016 enrollees belong to this cohort. On its website, CNBC reports that this move aims to improve the financial health of insurers which offer plans on ACA exchanges. Data show some 45 percent of those “who paid a penalty or claimed an exemption for 2014 were under the age of 35, compared to just 30 percent of all taxpayers that year.”

What This Means For Small Businesses

Small businesses have experienced firsthand the financial pressures of mounting healthcare costs under Obamacare. Rather than spending funds on a marketing campaign to encourage young adults to sign up for Obamacare, the government should be focusing on fixing a broken health insurance mandate.

Additional Reading

Also covering the story are the Wall Street Journal “Washington Wire” blog, The Hill, Minneapolis Star Tribune, Modern Healthcare, and Kaiser Health News.

Note: this article is intended to keep small business owners up on the latest news. It does not necessarily represent the policy stances of NFIB.

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