American Rescue Plan Act (ARPA) Expire at End of 2022
The expiration of American Rescue Plan Act (ARPA) subsidies at the end of 2022 may result in 3 million members losing coverage. Reduced subsidies is a scary possibility that will come in the middle of Open Enrollment 2023 and Medicaid Unwinding.
To stay ahead of this deadline, brokers must plan now to prevent their clients from losing coverage.
ARPA increased affordability and extended member access plans
The Marketplace’s increased availability of zero- and low-premium plans was a key factor in Open Enrollment 2022’s success. The ARPA contributed to a record 14.5 million individuals enrolling in 2022 Marketplace coverage, a 21% increase compared to the 2021.
How did ARPA achieve success?
Lowering the premium contribution limit for households between 100-400% of the federal poverty level (FPL)
Offering no-premium coverage for households from 100-150% FPL
Lowering the premium contribution limit to 8.5% and extending tax credits for the first time to households above 400% FPL
ARPA set to expire at the end of 2022
At the end of 2022, the transition from zero to low premium plans may result in millions of members losing coverage. Members that transitioned to plans that cost as low as $1 per month will need to establish payment channels. The more hurdles one has to jump through, the more limited the coverage becomes.
Experts project that 15% of those currently enrolled in the Marketplace would lose coverage without the increased tax credits. Most of these individuals that will become uninsured fall between 133% and 400% FPL. Those above 400% of the FPL will lose all their tax credits.
In rural areas, older individuals who have relatively high income levels are at a high risk of overpaying for insurance.
Protect your clients from coverage loss
While some state base marketplaces (SBMs) will auto-enroll eligible clients once coverage changes, brokers can’t rely on states. Brokers must be the first line of defense for preventing catastrophic coverage losses by communicating with at-risk clients early.
Inform them of potential subsidy changes. If a client is no longer eligible for reasonably priced plans, explain the changes and guide them to the next steps.
Invest in automated messaging
Investing in automation will save brokers resources in the long run. Personalized fields and an integrated client dashboard will help brokers increase messaging output with minimal effort. They will be able to compile and organize all their clients’ detailed information on a single interface, which is very useful in targeting at-risk demographics.
In addition to automated messaging, brokers must also have a multi-channel approach that makes the most of the technology available. Many of those at risk of losing coverage do not have access to all traditional means of communication. Make sure to make the extra effort to adjust your outreach channels based on what performs best for each demographic.
Inshura is a FREE online ACA insurance tool, perfect for agents and agencies! Agents can boost their ACA and other enrollments using this easy-to-use solution for quoting, enrolling, automating renewals, and managing clients!
And inshura is CMS EDE PHASE III certified, so it automatically exchanges data directly from the Marketplace.
Building excitement about industry-changing technology is the key to growth. As a professional communicator, Paul turns complex, technical projects into compelling customer stories that build excitement and grow sales. And Paul’s Marketing and PR campaigns convince people to re-think & improve their business.
From Omnichannel outreach to Technical SEO, TV Advertising to Social Media, Paul connects Inshura’s message to thousands of people selectively targeted to bring about the best ROI, ensuring 3x to 5x company annual growth.
With an incredible depth of knowledge about an insurance agency’s day-to-day operations, the experience Linette gained while managing her agency is vital to our understanding of an agent’s daily needs.
Bringing more than a decade of experience to Inshura, Linette was recognized as one of the highest Medicare-producing brokerages, with special honors for Compliance and Customer Service before joining our team.
Linette’s real-world insights and ability to connect with customers are invaluable to both our development and marketing teams.
With more than twenty-five years of experience in commercial litigation, commercial transactions, and regulatory compliance, Susan, our Chief Legal Officer, oversees Inshura’s legal and compliance responsibilities.
Susan has represented many businesses in diverse but relevant fields including information technology, healthcare, insurance, and professional services. The breadth and depth of her legal knowledge and experience enables her to help Inshura stay on top in the fast-paced and growing online insurance market.
Before joining Inshura, Matthew built a very successful insurance business. The experience and insights he gained along the way translate to an ability to communicate with other insurance professionals and bring them into the Inshura family.
Under Matthew’s stewardship, Inshura has grown year-over-year, with inshura experiencing a 5x growth in health insurance sales.
Turning ideas into products is what Ashwini does best. We turn to her to take a vision and mold those ideas into viable products.
With a unique ability to work closely with multiple departments, like engineering, sales, marketing, and customer service departments, Ashwini deftly consolidates input from every department and then guides the development of successful, feature-rich, and easy-to-use solutions.
Passionate about product quality, with a customer-focused perspective, Manal leads the departmental teams to design the very best solutions.
His experience with the medical and technology industries translates into an ability to interpret and define new processes and automation strategies that bring Inshura its’ unique and efficient functionality.
With a Computer Engineering degree and later an MBA from the Wharton School of Business, Manal’s experience and leadership is proven by our rapid growth.
With a keen insight into technology, development, and business operations, Ravi is growing Inshura into a next-generation company focused on technology and the customer.
As a strategic innovator, Ravi was central to the success of multiple projects at Verisign, Portal/Oracle, and ACT TV. With decades of leadership experience in the high-tech, fintech, and logistics industries, he is expanding the scope of inshura to include AI, ML, and other new technologies.
Starting with just two people, Girish took just a few short years to build a $135 million technology company.
Mr. Panicker received his degree in Computer Science, then earned a Master of Science in Computer Science from Drexel University in Philadelphia. In 2003, Girish transformed his software skills and passion for building custom software into his own business.
Inshura is his latest innovation. An insurance quoting and enrollment platform that solves daily challenges experienced by thousands of insurance agents.