Government to pick plans for displaced health law customers

WASHINGTON – The Obama administration is worried that insurers bailing out of the health law’s markets may prompt their customers to drop out, too. So it plans to match affected consumers with remaining insurance companies.

The hope is to keep people covered, but there’s concern that the government’s match-making will create confusion and even some disappointed customers.

The new backstop was outlined in an administration document circulating among insurers, state regulators and consumer groups. It also calls for reaching “discontinued consumers” with a constant stream of reminders as the law’s 2017 sign-up season ramps up. Open enrollment for HealthCare.gov starts Nov. 1 and ends Jan. 31.

The insurance markets were envisioned as dynamic engines of private competition. But in many states, they have run into problems.

Some consumer advocates say this latest effort will help people retain coverage in a challenging year when premiums also are rising. Other advocates, however, worry it will cause confusion. Insurers fear a backlash from customers disappointed with reduced options. The administration says consumers have the last word on accepting any “alternate” plan they’re offered.

“I’m concerned that the alternative plan will look like a ‘recommended choice’ by the marketplace,” said Elizabeth Colvin, director of Insure Central Texas, an Austin nonprofit that helps people sign up for coverage.

“The way it is presented could be interpreted as, ‘This is a plan we recommend,’ or ‘This is a plan we think will work for you,’ or ‘this is one of the better plans,’ ” Colvin said.

The administration said it isn’t able to provide an estimate of the number of people who’ll get notices about their new plans. It could range from several hundred thousand to 1 million or more, say independent experts.

Big-name insurers are leaving the market because of financial losses and nonprofit insurance co-ops are collapsing. Insurers say customers have turned out to be sicker than expected. Many younger, healthier people have stayed away, even at the risk of fines for being uninsured.

Markets such as HealthCare.gov provide subsidized private coverage.