Although 39 percent of U.S. consumers say they are “somewhat knowledgeable” about the Affordable Care Act, 90 percent don't know the launch date of the new health insurance exchanges—a core tenet of the individual mandate requiring all Americans to obtain health insurance or pay a fine, according to a survey released this week by InsuranceQuotes.com.
A major component of the ACA, the exchanges, which allow individuals to compare and buy health insurance policies, will be available for online and telephone enrollments beginning Oct. 1, 2013. Coverage will begin on Jan. 1, 2014.
In total, 28 percent of Americans say they are not too knowledgeable about the ACA; 21 percent say they are not at all knowledgeable, and only 10 percent say they are very knowledgeable.
In general, consumers' knowledge of the details of the ACA is mixed. For example:
- 40 percent expect health care reform to have a major effect on their lives, while 39 percent forecast a minor effect and 19 percent expect no effect
- 73 percent knew that health plans cannot deny coverage based on preexisting health conditions
- 66 percent accurately said that health plans must extend coverage to dependent children up to age 26
- Less than half know that health plans must limit the total amount of money patients have to pay out of pocket each year and that health plans cannot place limits on the total dollar value of benefits that patients receive.
The survey, conducted by Princeton Survey Research Assocs. International, was conducted by phone with more than 1,000 U.S. adults. The complete study is available at http://www.insurancequotes.com/health-care-reform-law
This “inconsistent understanding” means that “a lot of people need to study up on health care reform and what it means to them”—and also presents a unique opportunity for knowledgeable independent insurance agents and brokers to lend a hand, said Laura Adams, senior insurance analyst, InsuranceQuotes.com.
Because the ACA marketplace has been delayed for small businesses for at least a year, agents' role with these customers will remain unchanged for now, she said. However, agents and brokers working with small businesses can serve as advisors, especially when businesses decide to opt for a penalty and drop healthcare coverage for employees, who can then shop for coverage on the marketplaces.
Although most larger companies with more than 1,000 employees are retaining healthcare for their qualified workers, many smaller businesses will find it cheaper to take the $2,000 per employee fine than to offer healthcare that can cost up to $15,000 per worker, Adams said. In these cases, “agents could show employees what their options are and help them fill out applications to find insurance products on the exchange,” she said.
In fact, agents can get involved on the consumer side immediately by serving as “navigators” to assist individuals obtain coverage in the 18 states that have established their own health insurance exchanges, Adams said. However, she cautioned that this process can be “tricky” since navigator servicing fees are paid from federal grant money, which would preclude agents from accepting commissions on any insurance they help to place.
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Agents licensed in states without their own exchanges, in which the program reverts to the federal system, can serve as “assistors,” who can operate through contracts and collect commissions for guiding consumers to a health plan on the federal exchange, Adams said.
Similarly, agents can also guide their business customers through the intricacies of the ACA, she said. Although the InsuranceQuotes.com survey polled only consumers, confusion about ACA requirements permeates the business world, Adams said. Providing employers with education around the subject—through face-to-face meetings, white papers or seminars—can position agents and brokers as trusted authorities and open the door to new business.
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