5265 N. Academy Blvd. Suite 2200

Colorado Springs, CO 80918

updated_logo Insurance




ACA Advertising Budget Cut

By benefitlink92293438, Sep 1 2017 08:28PM

HHS (Health and Human Services) announced advertising for ACA plans will be cut from $100 MILLION spent last year to a mere $10 MILLION for the upcoming Open Enrollment. I'm sorry, but I believe even at the $10 million dollar "slashed" budget is alot to spend to get 12.3 million enrolled. The various media sourcesare citing the current administrations disdain for Obamacare and this as another effort to undermine and sabatoge ACA. But, does spending 100 million to get 12 million enrolled seem like a good ROI? Even spending 10 million doesn't make sense.

Additionally funding for "Navigators" will also be cut. These are individuals employed by the exchanges or other non-profits to help a consumer enroll. They are not licensed agents therefore they cannot explain specifics on insurance policies, just help them with the enrollment process and subsidy applications. The navigator program is going from $62.5 million to $36.8 milllion. HHS stated navigators enrolled fewer than 82,000 people. When I do the math, that means they spent $762 for each enrolled member.. Last year According to HHS, one program received $200,000 and signed up one person . For the upcoming open enrollment navigators funding will be based its previous performance as a percetange of last years enrollment goal.

Meanwhile as a licensed agent/broker we are paid somewhere between $60 to $216 a year for an enrolled member.. For 2018, insurance companies are saying they are going to reduce our commissions even further or eliminate compensation to brokers alltogether. This is why we and many other brokers are no longer accepting new individual clients.

Read the full story from the AP http://hosted.ap.org/dynamic/stories/A/APFN_US_HEALTH_OVERHAUL_FUNDING_CUTS?SITE=AP&TEMPLATE=DEFAULT

the Gazette's article: http://daily.gazette.com/Olive/ODN/TheGazette/default.aspx

Washington Post https://www.washingtonpost.com/national/health-science/trump-officials-slash-advertising-grants-to-help-americans-get-affordable-care-act-insurance/2017/08/31/e8a45386-8e8f-11e7-84c0-02cc069f2c37_story.html?utm_term=.f4c6fa35f725

Add a comment
* Required
RSS Feed

Web feed

Stay up to date on the latest trends, ACA compliance and legislative changes in Employee Benefits with Benefit-Link.  Call us at