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Many insurance enrollees may not pay ongoing premiums

One stipulation of the Affordable Care Act (ACA) is those who signed up for insurance benefits aren’t officially finished with the enrollment process until they pay their first premiums. According to Forbes, estimates suggest 50 to 80 percent of newly insured Americans made their first premiums. However, while the majority of these individuals paid their January payments, many lawmakers and officials worry there may be an issue with ensuring people continue to pay their premiums every month.

Devon Herrick, senior analyst at the National Center for Policy Analysis, told Fox News if enrollees only provide their first payment and don’t pay additional premiums, they still have a considerable amount of time – 90 days – before their insurers remove them from their plans. This means just because the majority of newly insured Americans made their first payments doesn’t necessarily indicate they will remain on their insurance.

“It’s not just making the first payment – its making the second and third,” Herrick said. “We won’t have any official work on that for at least three to five months. Insurance companies may let that trickle out, if people who signed up didn’t follow through.”

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Erin Woulfe
Erin Woulfe
Erin Woulfe likes to write about things that matter. Keeping her finger on the pulse of what’s happening in the public sector world, she blogs about the latest legislative news and employee benefit trends that affect our school, city and county clients. She’s been with NIS since 2002. “I love connecting to our clients and providing them with the tools they need in order to administrate their plan,” says Erin. “Whether that be materials to educate their employees on certain benefits, how to effectively communicate change within an organization or just providing tips and how-to’s to help them make their job easier.”

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