The United States saw a decrease in Affordable Care Act (ACA) health insurance plan enrollment in February, with approximately three million fewer people compared to the previous year. The U.S. Department of Health and Human Services reported a 13% drop, attributing it largely to federal measures targeting fraudulent enrollments.
However, healthcare analysts believe the significant decline from 22.1 million enrollees in 2022 to 19.2 million in 2023 is mainly due to the expiration of federal subsidies on January 1. This change led to increased plan costs, making it difficult for many individuals to afford their premiums.
Cynthia Cox, a vice president at KFF, highlighted findings that real individuals lost coverage when premium payments increased by double or triple digits. The latest government data, compiled in April, gives the first detailed view of enrollment numbers post grace period for nonpayment.
Earlier federal estimates in January indicated that 800,000 fewer people signed up for ACA plans than the previous year, marking the first enrollment decline in four years during the shopping window. Cox anticipates further decreases, potentially reaching a low of 17.5 million enrollees by the year’s end.
ACA plans have been particularly favored by gig workers, farmers, ranchers, hairstylists, and other professionals without employer-sponsored coverage. The subsidies at the center of last year’s congressional debate were pivotal for maintaining affordability.
The sharp rise in health insurance costs coincides with heightened voter concerns over affordability as the November elections approach.