HealthSource RI opened its 2016 enrollment period for health insurance plans with a mission to attract more residents and small businesses who are eligible to purchase insurance through the exchange.
More than 2,600 Rhode Islanders called the state’s health care exchange on Nov. 2, the first day that contracted phone-bank employees were available for questions, according to a spokeswoman. The following day, another 2,800 people called, about half in the process of completing applications.
Similar traffic was recorded on the HealthSource RI website, where individuals who are not offered insurance through an employer can also review and apply for health care plans.
The enrollment period, for policies that begin Jan. 1, 2016, ends on Dec. 23. Policies that begin later can be chosen through Jan. 31, 2016. Small-business enrollment periods vary, depending on the renewal date for the company.
As HealthSource RI prepared to launch its third annual enrollment period, the agency announced it would have a change in leadership. Anya Rader Wallack, director for the past year, has taken a new position as Rhode Island’s director of Medicaid.
The health care exchange is projecting modest increases in enrollment for the year ahead.
In 2015, the exchange had 32,400 individuals and families signed up for health insurance plans, a number that is expected to rise to 35,000 in 2016, according to Maria Tocco, a spokeswoman for HealthSource RI.
The number of business enrollees, that is, employees and family members insured through small-business health plans, is 4,300 and expected to rise to 5,900 in the upcoming year.
The number of health care insurers has remained the same for 2016. Three insurers will offer plans through the exchange: Blue Cross & Blue Shield of Rhode Island, UnitedHealthCare of New England and Neighborhood Health Plan of Rhode Island.
They will offer a combined 27 plans for individuals or families, up from 20 plans this year. Twenty-four health care plans are available for 2016 on the small-business marketplace, up from 20 this year.
Dental insurance is available for purchase as well, from three providers: Blue Cross & Blue Shield, Delta Dental and Guardian.
In terms of cost, the premiums on average will increase in 2016, by varying amounts based on plan and insurance carrier.
In general, the individual and family premiums will rise an average of 4.1 percent, according to Tocco. Premiums for small-business plans will increase an average of 3.5 percent.
The challenge for HealthSource RI, according to benefit managers, is to draw in more participants among individuals as well as small businesses as it tries to absorb overhead costs.
And it’s doing so in a marketplace that is ever-more competitive, where insurers are adding their own set of multiplan options to employers who go through them directly.
The exchange faces several challenges this year, including the recent loss of its executive, and the decision of individual carriers to offer more options to employers who go through them directly, according to James J. Raiola, an insurance broker.
Most small businesses who use the exchange have fewer than 15 employees. They can choose among 25 different plans offered by Blue Cross, for example, if they go through that company directly.
Many employers question the value of going through HealthSource RI, as a result, said Raiola, president of James Raiola CFP and Associates. “The value to the exchange would be if it’s really important if they have multicarrier choices,” he said.
The small group, or small-business marketplace, remains under-enrolled, given the number of small businesses in Rhode Island, according to Jim Moniz, senior vice president and employee-benefits practice leader at Starkweather Benefits Solutions in East Providence, a division of Starkweather & Shepley Insurance Brokerage Inc.
“In general, as we look at HealthSource RI, people have asked, ‘How come they haven’t grown more?’ ” Moniz said.
For small businesses, HealthSource RI has the structural advantage of plans from multiple carriers. And businesses that provide insurance to employees through the exchange can claim a federal tax credit.
“On the downside, not all of the plans are offered on the exchange,” Moniz said.
The new enrollment period is being handled differently than last, in part because of state reductions.
Unlike last year, the health care exchange will not have routine walk-in centers for people who need help with plans. Following a budget reduction, the state exchange decided to emphasize online programs and phone assistance. A contracted company has 125 to 130 people working a phone bank to help people with enrollment questions, Tocco said.
The website, www.healthsourceri.com, has been streamlined, with fewer pages required for people to review plans and make selections.
The exchange is, however, planning a few enrollment fairs, which will allow people to walk in with questions at selected dates and times.
Also new this year is automatic renewal for individuals and families. •
