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Obamacare sign-ups top last year in boost to law

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STAR-ADVERTISER ARCHIVE

This file image shows the healthcare.gov website home page.

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STAR-ADVERTISER ARCHIVE

This file image shows the healthcare.gov website home page.

About 8.3 million people have signed up for health coverage through Obamacare’s U.S.-run shopping markets this year, the U.S. said today, surpassing last year’s total and signaling good news for hospital and health insurance companies.

At about the same point in the enrollment period last year, 6.4 million people had signed up. The U.S. report counts enrollees for 2016 coverage as of Dec. 19 in 38 states that use the Affordable Care Act’s federal marketplace, the Centers for Medicare and Medicaid Services said. It’s the most comprehensive accounting since a Dec. 17 deadline for people to pick coverage that begins at the start of 2016.

Sign-ups this year are an important indication of how President Barack Obama’s health-care overhaul is faring ahead of the 2016 presidential election. They’re also a bellwether for hospital and health insurance stocks — investors are closely tracking the figures to see how many new paying customers those businesses can expect.

If the pace of sign-ups continues like it did last year, 10.7 million people could have coverage through the U.S.-run market alone by the time the enrollment period ends, Jason McGorman, an analyst with Bloomberg Intelligence, said in a note today.

It would also be welcome news for investors, who had been concerned that enrollment for 2016 would lag. Those worries contributed to a slump this year in hospital chains such as Tenet Healthcare Corp. and Community Health Systems Inc.

The U.S. has said that about 9.9 million people will probably be enrolled in Obamacare plans by the end of 2016, compared with a projected 9.1 million at the close of 2015.

Some enrollees typically stop paying for their health plans throughout the year. The U.S. said Tuesday that about 9.3 million people were enrolled in 2015 Obamacare plans as of Sept. 30, with 84 percent receiving subsidies to help them pay for the coverage. That’s down from a total of 9.9 million on June 30.

While sign-ups for 2016 coverage are running ahead of last year’s total, the figures aren’t directly comparable. Last year’s sign-up period began two weeks later, and an additional state, Hawaii, is using the federal exchange this year.

The 2016 enrollment figure updates a tally from last week, when the U.S. said that about 6 million people had signed up for individual health plans as of the Dec. 17 deadline, compared with 3.4 million in 2014. Those figures didn’t include people whose coverage was automatically renewed, who are in the new total.

The new total will continue to grow. People can still sign up for coverage that begins later in the year, and the data don’t include enrollment from states like New York and California, which run their own health-insurance marketplaces.

To contact the reporter on this story: Zachary Tracer in New York at ztracer1bloomberg.net To contact the editors responsible for this story: Crayton Harrison at tharrison5bloomberg.net Drew Armstrong

5 responses to “Obamacare sign-ups top last year in boost to law”

  1. stanislous says:

    Did I read that right? There are less people enrolled in Obamacare now… but the headline screams that more people signed up this year than signed up last year? (isn’t an enrollment of 9.3 million just a drop in the bucket compared with the total population of the US?

    • kuroiwaj says:

      Stanislous, you’re correct, but it’s Bloomberg News. Last year was some 37 million without insurance, so we wait and see what are the final numbers. Remember Hawaii has signed up some 30% from last years numbers, and where many of the 30% have not paid their premiums.

    • choyd says:

      Sure, but that would be dishonest. You have to compare enrollment of the non-insured rather than those covered under other plans.

      The point of the ACA is to reduce uninsured numbers. So comparing it to those already insured is pretty stupid.

  2. MoiLee says:

    Keep extending the Deadline…. Ha!ha!ha! too funny!

  3. cojef says:

    If the stats are indicating that there are more insured in 2016 over the previous years, can I look forward to a relief in my premiums in 2017? My premiums for 2016 really increased drastically more than the previous years. Something exceeding $100. Will be paying over $380 more than the $260 for high option for 2 with an HMO.

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