Government to pick plans for displaced health law customers

Associated Press

WASHINGTON

Worried that insurers bailing out of the health law’s markets may prompt their customers to drop out, too, the Obama administration plans to steer affected policyholders to remaining insurance companies. But those consumers could get a surprise if their new government-recommended plan isn’t what they’re used to.

The backstop was outlined in an administration document circulating among insurers and state regulators. It also calls for reaching those “discontinued consumers” with a constant stream of reminders as the health law’s 2017 sign-up season goes into full swing. Open enrollment for HealthCare.gov starts Nov. 1 and ends Jan. 31. A copy of the strategy was provided to The Associated Press.

The health insurance markets were envisioned as dynamic engines to facilitate private competition, but in many states they have run into problems that could lead to a greater government role.

Some consumer advocates say the administration’s latest effort will help people hold on to coverage in a challenging year that will also see sharper premium increases. Insurers worry that government picking plans will sow confusion and may trigger a backlash from customers disappointed with reduced options. The administration says consumers have the last word as far as accepting any “alternate” plan they’re offered.