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Politics

29 States lose Obamacare enrollees

29 States lose Obamacare enrollees
N&V Staff
September 16, 2015

Fewer enrollees could signal the beginning of a death spiral for Obamacare exchanges

(Americans for Tax Reform) – WASHINGTON, D.C. — Between the end of March and the end of June, 29 states plus the District of Columbia lost Obamacare enrollees, based on an Americans for Tax Reform analysis of recently released data from the Centers for Medicare and Medicaid Services (CMS). In total, Obamacare exchanges had a net loss of 238,119 enrollees in the three-month period.

The latest data finds that enrollment across all 50 states and DC sits at 9.9 million as of June 31. This is down from 10.2 million Obamacare enrollees as of March 31.

States that lost the most enrollees include Florida (-101,091), Georgia (-34,925), North Carolina (-32,300), Pennsylvania (-29,487), Texas (-23,194), New Jersey (-14,273), Indiana (-13,268), and Arizona (-10,905).

Twenty states posted increased enrollment numbers, with Massachusetts (32,438) and California (28,908) inching upward. One state, Colorado did not provide CMS with updated data.

In addition, approximately 423,000 individuals on Obamacare in 2015 were not legally enrolled due to failure to produce sufficient documentation proving citizenship or immigration status and were thus removed.

The poor performance of the program is bad news for the long-term sustainability of the federal and state Obamacare exchanges given their reliance on paying enrollees to meet costs. Exchanges typically fund their operations through a fee on premiums: the federal exchange that provides 37 states with coverage charges a 3.5 percent premium, while state exchanges are free to choose their own rate. Fewer enrollees could signal the beginning of a death spiral for the Obamacare exchanges.

The federal exchange, which dropped from 7.3 million enrollees to 7.2 million in the three-month period, can better absorb lost enrollees because costs associated with the exchange are pooled across all 37 states. State exchanges are more precariously placed because they have just a fraction of the customers to pool resources, yet they face similar costs. In total, enrollees on the 14 state exchanges fell from 2.9 million to 2.7 million.

“It all comes down to an economy of scale that just isn’t working,” said Ryan Ellis, tax policy director at ATR.

Below is a list of each state’s net gain or loss of enrollees between March and July.

State Net gain/loss of Customers
Alabama -4,402
Alaska 1,060
Arizona -10,905
Arkansas -1,348
California 28,908
Colorado* 0
Connecticut -6,056
DC -323
Delaware 766
Florida -101,091
Georgia -34,925
Hawaii 602
Idaho 994
Illinois 3,745
Indiana -13,268
Iowa 257
Kansas -618
Kentucky -3,468
Louisiana -8,214
Maine -1,409
Maryland 5,958
Massachusetts 32,438
Michigan -5,092
Minnesota 3,103
Mississippi -6,788
Missouri -7,697
Montana -549
Nebraska 396
Nevada -2,065
New Hampshire -880
New Jersey -14,273
New Mexico 222
New York 8,718
North Carolina -32,300
North Dakota 429
Ohio -644
Oklahoma 2,222
Oregon 659
Pennsylvania -29,487
Rhode Island 2,035
South Carolina -5,672
South Dakota -21
Tennessee -5,440
Texas -23,194
Utah -1,436
Vermont -1,617
Virginia -8,007
Washington 5,156
West Virginia 1,244
Wisconsin 527
Wyoming -163
Total -238,119

*Colorado did not provide CMS with updated enrollment data

**State Exchanges: California, Colorado, Connecticut, DC, Hawaii*, Idaho, Kentucky, Maryland, Massachusetts, Minnesota, New York, Rhode Island, Vermont, and Washington

***Hawaii is transitioning to the federal exchange.

 

Americans for Tax Reform is a non-partisan coalition of taxpayers and taxpayer groups who oppose all tax increases. For more information, please contact John Kartch at jkartch@atr.org or visit the website www.ATR.org.

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September 16, 2015
N&V Staff

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