Health

Insurers Accelerate Moves to Limit Health-Law Enrollment

Published

11 years ago

February 8, 2016

By Jay Hancock, Kaiser Health News

Stung by losses under the federal health law, major insurers are seeking to sharply limit how policies are sold to individuals in ways that consumer advocates say seem to discriminate against the sickest and could hold down future enrollment.

In recent days Anthem, Aetna and Cigna, all among the top five health insurers, told brokers they will stop paying them sales commissions to sign up most customers who qualify for new coverage outside the normal enrollment period, according to the companies and broker documents.

The health law allows people who lose other coverage, families with new children and others in certain circumstances to buy insurance after enrollment season ends. In most states the deadline for 2016 coverage was Jan. 31.

Last year, these “special enrollment” clients were much more expensive than expected because lax enforcement allowed many who didn’t qualify to sign up, insurers said. Nearly a million special-enrollment customers selected plans in the first half of 2015, half of them after losing previous coverage.

In addition, Cigna and Humana, another big health insurer, have ceased paying brokers to sell many higher-benefit “gold” marketplace plans for individuals and families while continuing to pay commissions on more-profitable, lower-benefit “bronze” plans, according to documents and interviews.

Gold plans typically enroll sicker members than do less comprehensive policies, say insurance experts. As of June, more than 695,000 people had enrolled in gold plans.

Those who want to buy individual and family plans can still do so directly through the Affordable Care Act’s online marketplaces or via navigators working for nonprofit groups.

But the retreat from broker sales, which includes last year’s decision by No. 1 carrier UnitedHealthcare to suspend almost any commissions for such business, erodes a pillar of the health law: that insurers must sell to all customers no matter how sick, consumer advocates say.

By inducing brokers to avoid high-cost members — whether in gold plans or special enrollment — the moves limit access to coverage and discriminate against those with greater medical needs, said Timothy Jost, a law professor at Washington and Lee University and an authority on the health law.

“The only explanation I can see for them doing this is risk avoidance — and that is discriminatory marketing and not permitted,” he said. “When people wonder why we’re not getting millions more enrollees in Affordable Care Act health plans, one reason is, the carriers are discouraging it.”

The insurance industry says it is not discriminating but adjusting to market realities including higher-than-expected medical claims and the failure of a government risk-adjustment program called “risk corridors” to cover much of that cost.

“Without making necessary changes to coverage and benefits, there was no way for health plans to remain in the market or to offer the kind of coverage as they had in the past without sustaining huge losses,” said Clare Krusing, spokeswoman for America’s Health Insurance Plans, an industry lobby.

The adjustments are critical to keeping coverage affordable and sustainable, said individual insurers contacted by a reporter.

If insurers are telling brokers they won’t be paid for enrolling people in gold plans, “that to me is pretty discriminatory,” said Sabrina Corlette, research professor at Georgetown University’s Center on Health Insurance Reforms.

The changes don’t affect job-based insurance or the government’s Medicaid and Medicare programs.

The nonpartisan Congressional Budget Office estimated as recently as last March that 21 million consumers would be enrolled by now in private health insurance plans sold through online marketplaces. Now CBO forecasts 13 million will sign up this year.

Brokers are critical to sign-ups and the success of the health law. For 2014, 44 percent of Kentucky enrollees bought through brokers. So did 39 percent of the California enrollees. No similar figures are available for the marketplace that serves most states, healthcare.gov.

Brokers are a “very important” part of enrollment for individuals and families despite alternatives provided by the health law, said Robert Laszewski, an insurance consultant. “They’re still big.”

With varying commissions, brokers will be tempted to promote only plans they make money on, even if those aren’t the best for some customers, said John Jaggi, an Illinois broker and consultant.

“Now they’re really forcing the agent to think only of the plan that he gets compensated for,” he said.

The race to lower commissions began last year with United’s move along with decisions by several, smaller insurance co-ops to suspend sales fees shortly before they failed, brokers said. Other insurers feared they might end up getting their competitors’ unprofitable business, so they too adjusted fees.

Last week, BlueCross BlueShield of North Carolina also told brokers it would stop paying commissions for special enrollment starting April 1, reported The News and Observer of Raleigh.

“We expect that at some point in time all of these companies will continue to reduce commissions where we’re not able to be compensated in a way that we can continue to run our businesses,” said Kelly Fristoe, who sells health insurance in Wichita Falls, Texas.

Regulators in at least two states, Kentucky and Colorado, have already warned insurers that altering broker commissions violates “fair marketing” rules or the terms approved rate filings.

Federal regulations prohibit insurers from marketing practices that “have the effect of discouraging the enrollment of individuals with significant health needs.” Violations can bring penalties of up to $100 a day for each adversely affected person.

The Department of Health and Human Services did not respond to requests for comment on the practices.

Insurers “can’t market their plans in ways that discriminate,” said Sarah Lueck, a policy analyst at the Center on Budget and Policy Priorities, a left-leaning think tank. “It’s going to take some more statements from regulators to make sure insurers get the message.”

What’s unclear is whether insurers intend to resume paying full commissions when open enrollment begins for 2017.

In its Monday letter to brokers, Anthem said it “remains committed” to individual and family insurance. United, however, said last year it might leave that business altogether — a drastic move because under federal law it couldn’t reenter for five years.

Few if any carriers want to go that far, said Laszewski.

“They can’t withdraw from the market,” he said. But by adjusting commissions, “they’re doing everything they can to slow it down until it gets fixed.”

Special-enrollment business is typically costlier than average because sick people are more motivated to sign up outside the normal marketing season, insurance experts say.

But last year’s special enrollments were especially unprofitable because regulators did little to ensure that consumers followed the rules — that they had lost previous coverage, gotten married, moved or otherwise qualified for off-season sign-ups, insurers say. As a result, any consumer could wait until he or she needed care to enroll, they say.

Aetna told HHS that a fourth of all its marketplace members joined through special enrollment last year and that many dropped out soon after receiving expensive care. Special-enrollment members used as much as 50 percent more care than those who sign up before the deadline, said the Blue Cross and Blue Shield Association.

Of the top seven health insurers, only Kaiser Permanente and Health Care Service Corp., which owns Blues plans in Illinois, Texas and elsewhere, haven’t changed commissions recently for gold plans or special enrollment, brokers say.

“Kaiser Permanente won’t be making any broker commission changes,” said spokeswoman Amy Packard Ferro. “It’s business as normal but we are always evaluating our commission structure,” said HCSC spokesman Greg Thompson.

The risk corridor program was supposed to reimburse insurers with sicker-than-average members. In November, however, HHS said it had only enough money to pay 13 percent of what it owed under the program for 2014.

The result for gold plans is that “the risk adjustment system does not work at all,” said Ana Gupte, a health insurance analyst at Leerink Partners. “So it’s impossible to make money.”

Analysis by Standard and Poor’s shows Humana, which is owed $243 million for 2014, as the biggest risk-corridor loser. United, Anthem, Aetna and Cigna, however, aren’t in the top 20.

For most of the largest insurers, blaming risk corridors for cutting broker fees “seems more like an excuse than a reason,” said Jost.

For more information, go to khn.org

Oakland Post

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It’s Time to Lose Weight Before the Holidays

Licensed internist Dr. H. Geoffrey Watson has joined gastroenterologist Dr. Ralph Peterson at Oakland’s MacArthur GI to address the rising obesity epidemic. With U.S. obesity rates reaching 42.4%, the clinic offers supervised weight-loss programs and screenings for fatty liver disease. Treatments include dietary counseling and various medications, such as GLP-1 receptor agonists, which regulate digestion and appetite. As certain populations continue to be disproportionately affected by chronic health conditions, medical experts are highlighting new tools available to help patients reach their goals before the holiday season. Read more.

Published

2 weeks ago

October 19, 2026

Post News Group

By Special to The Post

Dr. H. Geoffrey Watson, a licensed internist, has joined renowned gastroenterologist Dr. Ralph Peterson at MacArthur GI in Oakland to address obesity, provide supervised weight-loss programs including GLP-1 therapy, and screen for and treat fatty liver disease.

The Obesity Epidemic

Obesity is associated with numerous chronic health problems, including hypertension, diabetes, heart disease, sleep apnea, asthma, depression, joint disorders, fatty liver disease, and high cholesterol. Its causes include genetics, environment, stress, medication side effects, hormonal imbalances, and other factors.

Since 1999, the prevalence of obesity in the United States has risen from 30.5% to 42.4%. Childhood obesity rates are also climbing, with approximately 19.3% of children and adolescents now affected.

Measuring Obesity: Body Mass Index

Obesity is measured using a formula called the Body Mass Index (BMI). You can calculate your own BMI on most smartphones by searching “BMI calculator” and entering your height and weight. A BMI of 25 to 29.9 is classified as overweight, and a BMI of 30 or greater is classified as obese.

Populations Disproportionately Affected

Obesity affects certain populations at higher rates. Among U.S. adults, obesity prevalence is 49.9% in Black adults, 45.6% in Hispanic adults, 41.4% in White adults, and 16.1% in Asian adults.

Treatment Options

A variety of treatments are available for obesity, including dietary counseling, exercise programs, bariatric surgery, and anti-obesity medications.

Common oral medications include:

• Adipex (phentermine): A stimulant that works by suppressing appetite.

• Contrave (bupropion/naltrexone): A combination of an antidepressant and an anti-addiction medication that helps control appetite and cravings.

• Qsymia (phentermine/topiramate): A combination of a stimulant and an anti-seizure medication that reduces appetite and cravings.

GLP-1 Receptor Agonist Therapy

Glucagon-like peptide-1 (GLP-1) receptor agonists were originally approved to treat type 2 diabetes. GLP-1 is a hormone produced naturally by the body that regulates digestion, blood sugar, and appetite by communicating with GLP-1 receptor cells throughout the digestive tract. These medications reduce cravings, appetite, and food intake by influencing the hunger hormones ghrelin, which stimulates hunger, and leptin, which signals fullness.

What We Offer

Drs. Peterson and Watson provide FDA-approved tirzepatide injections, a GLP-1 receptor agonist medication indicated for weight management. Each patient receives a comprehensive history and physical examination to ensure the safety and appropriateness of the medication as part of an overall weight-loss protocol. Dr. Peterson also offers ultrasound screening for fatty liver disease.

We look forward to helping you reach your weight-loss goals and feel your best this holiday season.

H. Geoffrey Watson, M.D., runs the MacArthur GI Clinic at 10520 MacArthur Blvd., Oakland, CA. He can be reached at (510) 562-7467.

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Community

Allen Temple Baptist Church Hosts Free Prostate Cancer Screenings on Oct. 17

The summit’s mission is to reduce the impact of prostate cancer through education, early detection, research, and support. It is presented in partnership with The Oakland Institute of Health, Inc., SCAN, Brotherhood of Elders Network, UCSF Helen Diller Family Comprehensive Cancer Center, Alameda County Public Health Department, Stanford Medicine Cancer Center, Impact Oakland Now, Bay Area Umoja Health, Bay Area Black Nurses Association, Inc., and 100 Black Men of the Bay Area, Inc.

Published

3 weeks ago

October 13, 2026

Post News Group

By Rev. Charlotte Y. Williams, Special to The Post

The Prostate Cancer 2500™ Care Summit brings together health systems, community organizations, and survivors to put early detection within reach

Black men in America are diagnosed with prostate cancer more often than other men and are about twice as likely to die from it. Early detection changes that outcome.

On Saturday, Oct. 17 from 10 a.m. to 2 p.m., Allen Temple Baptist Church will host the Prostate Cancer 2500™ Care Summit (#PC2500), a free event open to the entire community.

. Attendees can receive prostate cancer screenings and health consultations on site, learn about prevention and nutrition, ask medical experts questions in an interactive Q&A, and hear from survivors who will share their stories and offer support.

Screening is recommended beginning at age 45, and at age 40 for Black men with a family history of prostate cancer. All men are welcome, and families are encouraged to attend.

For more information prior to the event, reach out to Rev. Charlotte Y. Williams at (510) 604-5242 | cwilliams@allen-temple.org

For more information on the day of the event, reach out to Deacon Dwight Williams (510) 501-1650 dwight.williams@allen-temple.org. The church is located at 8501 International Blvd., Oakland, CA 94621 The service is free and free parking and refreshments will be provided. The site is accessible to persons with disabilities. To pre-register, go to Allen-Temple.org

Allen Temple Baptist Church was organized in 1919 in Oakland. For 107 years, ATBC has served as a bright beacon of faith, hope, and love beyond its’ four walls. Allen Temple is committed to sharing the love of God and the message of Good News throughout the world. We welcome people of all ages and cultural backgrounds as we joyfully celebrate worship and fellowship, and carry out ministries of evangelism, discipleship, education, community outreach, and global missions. Allen Temple’s holistic, prophetic and social justice ministries address the needs of the whole person as well as the whole community. Dr. Jacqueline A. Thompson.

Rev. Charlotte Y. Williams is the minister and director of Communications at Allen Temple Baptist Church.

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Business

OP-ED: Proposition 44 Would Put a Price on Trust

The danger in Proposition 44 is not only its 90 percent figure. It is that the meaning of “qualifying” spending will be worked out later. A clinic preparing a budget today may not know whether a navigator, health educator, transportation program, outreach worker, technology upgrade, or other patient-support service will be counted the way it expects. Yet the financial consequence of getting it wrong could be immediate.

Published

4 weeks ago

October 6, 2026

Post News Group

Oakland’s public conversation about health care must begin with a simple truth: a doctor’s appointment is not the same thing as access to care.

For a mother juggling work and child care, access may mean a text-message reminder, a bus pass, an evening appointment, or someone who can explain what Medi-Cal covers. For an older patient managing diabetes, it may mean help scheduling a specialist visit and understanding new medications. For a family that has been dismissed or misunderstood in medical settings, access may begin with meeting a community health worker who knows the neighborhood, speaks their language, and treats their concerns with respect.

Community health clinics make that kind of care possible. They are part medical provider, part navigator, part educator, and part trusted local institution. Proposition 44 threatens to narrow the definition of what counts as patient care in a way that could undermine the very supports that allow patients to receive it.

The statewide measure would require covered nonprofit community clinics to spend at least 90 percent of their annual revenue on health care or qualifying program services. The ballot measure directs the Attorney General to establish more detailed guidance on what expenses qualify. Clinics that do not meet the threshold could face penalties for the difference. The Legislative Analyst’s Office reports that affected clinics currently spend an average of about 80 percent of revenue on health care services.

A percentage may look like a clean measure of accountability. But health care is not cleanly divided between what happens inside an examination room and everything that enables a patient to enter one.

Consider the work that happens before and after a visit. Clinic staff maintain confidential patient records. They follow up after missed appointments. They keep information systems secure. They recruit and train employees in an expensive and competitive health care labor market. They coordinate referrals, process claims, purchase supplies, maintain buildings, and make certain that patients are not lost somewhere between diagnosis and treatment.

Oakland families should not be asked to accept the fiction that these functions are unrelated to care.

The Legislative Analyst’s Office says clinics falling short of the requirement could be required to pay the shortfall amount to the state and could seek to recover the money only if they show compliance within five years. The same analysis estimates state enforcement costs in the low tens of millions of dollars annually, supported by fees.

That is a troubling arrangement for organizations that are expected to provide care to people with the fewest alternatives.

Oakland has learned that trust is not built through slogans. It is built when a patient is listened to, when a parent can secure an appointment for a child, when a clinic returns a call, and when a person receives help without being shamed for their income, insurance, language, immigration history, or prior experience with the system.

For Black residents in particular, trustworthy care is not an abstract goal. Persistent inequities in health outcomes and patient treatment are real. Community-centered clinics can help bridge the gap with culturally responsive staff, patient navigators, behavioral-health programs, and partnerships that understand the conditions shaping health outside the clinic door.

Proposition 44 could pressure providers to treat those supports as expendable because they do not fit neatly into a state-enforced formula. That would be a mistake.

Accountability is necessary. Clinics that receive public resources should be transparent, well governed, and focused on their mission. But good oversight asks whether patients are being served well, whether money is managed responsibly, and whether communities can obtain needed care. It should not rely on a rigid ratio that may punish clinics for doing the hard work of reaching people who need more than a brief medical encounter.

A broad coalition of providers and community organizations opposes Proposition 44, including the California Primary Care Association, the California Medical Association, the California Hospital Association, Planned Parenthood Affiliates of California, and the California Teachers Association.

Oakland needs health policy that expands the circle of care. Proposition 44 risks drawing that circle smaller.

The Oakland Post editorial board urges a No vote on Proposition 44.