The Department of Health and Human Services recently proposed a rule whereby those who signed up for insurance coverage through the Affordable Care Act’s State and Federal exchanges would be automatically re-enrolled for coverage in 2015.
Consumer research shows that most individuals won’t take action on their own and would therefore be likely to let policies lapse. Automatic re-enrollment would avoid having people inadvertently fall out of coverage.
Insurers with a strong market-share in the first year of enrollment will likely support the rule, as it will reduce administrative tasks and make it easier to hold on to customers. However, for those insurers who either struggled to gain customers or are entering the exchanges for the first time in 2015, the ruling could prove problematic.
HHS will be taking comments for 30 days before issuing a final rule.