x
Breaking News
More () »

Michigan health exchange enrollment increases

Participation in the federal health exchange increased nearly fourfold in Michigan during the second month of operation, according to figures released by the federal government today.

WASHINGTON (Maureen Groppe, Gannett Washington Bureau)-- Participation in the federal health exchange increased nearly fourfold in Michigan during the second month of operation, according to figures released by the federal government today.

But the 6,847 Michiganders who have selected a health plan through November are still only a fraction of the estimated 725,000 Michiganders who could potentially buy insurance through the exchange because they don't get coverage from an employer or through a government program like Medicare or Medicaid.

The fourfold increase in the number of Michiganders selecting a plan in November versus October was similar to the national increase.

Federal officials said interest in the exchange will continue to grow, particularly now that the federal website is "working smoothly for the vast majority of users."

"As more Americans give HealthCare.gov a second look, they are finding that the consumer experience is night and day compared to what it was back in October," Secretary of Health and Human Services Kathleen Sebelius said in a blog post.

After technical problems plagued the website when it launched in October, the government promised the site would work well for about 80 percent of users by the end of November.

People must sign up by Dec. 23 for coverage that begins in January. They have until the end of March to buy a plan for 2014 to avoid being penalized for not having insurance.

Applications covering 98,235 Michiganders were successfully completed in October and November. Of those who applied, 6,857 chose a private insurance plan and 7,363 were determined to be eligible for Medicaid, the joint federal-state health care program for the poor. Others have either not chosen a plan, are waiting to be determined eligible for coverage by private health insurance or Medicaid, or have been found ineligible.

Of the 74,693 Michiganders determined eligible for a private insurance plan, 39 percent can also receive tax credits to help reduce the cost of the premiums.

The exchange is the main way that the law anticipated shrinking the ranks of the uninsured through an expansion of Medicaid and by making shopping for individual plans easier and subsidized for those earning up to 400 percent of the federal poverty level --- about $46,000 for an individual.

Michigan, like most states, deferred to the federal government to run its exchange. The District of Columbia and the 14 states that are operating their own exchanges accounted for 62 percent of the 364,682 Americans who selected health insurance in the first two months. In Kentucky, for example, 54 percent more people have applied for coverage than in Michigan.

The federal government did not identify how many people who have selected a plan have actually paid for the insurance. And the government did not have demographic information on those signing up, such as whether more younger or older people are using the exchange.

Despite the increase in the number of people signing up for insurance, the exchanges have a long way to go to meet their goal of 7 million new insurance customers in the first year, said Alan Cohen, the chief strategy officer of Liazon, which provides health exchanges to private employees.

"They've been stunningly, dramatically below expectations," Cohen said.

Before the new numbers were released, Cohen said he expected them to be "much bigger than in the past."

"But even with 100,000 people a day, we need to get 8 million," Cohen said. "It's just a big, big number. The numbers coming out seem like so much more than before, but they still have to be so much more. We could almost be lulled into complacency."

Diversity among those buying insurance is more important than the sheer number of enrollees said Ceci Connolly, managing director of PWC's Health Research Institute.

"Obviously you want to see good, steady enrollment day after day after day," Connolly said. "But I will tell you that ultimately it's less about the number of people who enroll and more about who enrolls -- a good mix of age and health conditions to spread out the risk."

USA TODAY reporter Kelly Kennedy contributed to this story.

Before You Leave, Check This Out