Math and the Multiplier Effect of the ACA

You might have read or heard about recent enrollment figures regarding marketplace enrollments for health insurance.  Following are some facts** worth knowing: Individuals enrolled during open enrollment in marketplace coverage. (Approx. 9.6 million on the Federal exchange and 3.1 million on the state based exchanges.) x $294 The average monthly tax credit for people qualifying for assistance. x 83% The percentage of enrollees qualifying for tax credit assistance. = $3, 099,054,000 The approximate monthly tax assistance to qualified Individuals.  x 12 = $37,188,864,000 The approximate annual tax assistance to qualified Individuals.

That’s an astounding amount of money, however, as compared to our annual deficit, it might appear small to some.  Where’s the money coming from?  The many taxes enacted as part of the ACA.   The aforementioned $ amounts DO NOT include expenditures for the following: 21.6 million Text messages sent by healthcare dot gov to consumers interested in learning more. 35 avg. emails received per consumer w/ reminders about deadlines, coverage and financial help. 15,000 application counselors, navigators and in-person assisters throughout the nation. 8200 public enrollment events. 48 trips taken by administration officials to visit local events and raise awareness about open-enrollment. Some say that the current ACA model is unsustainable, while others argue that it should provide for more.  The original forecast by the Congressional Budget Office (CBO) for enrollment by 2016 was 21 million.  Here’s the math for that scenario: (That’s $61.5 Billion for those that don’t like to interpret large numbers) Seems to me that sooner or later (hopefully sooner, for the future generation’s sake) math will dictate what’s possible.

**Figures & Statistics were estimates provided by CMS

Demystifying Aaron Roger’s Double Check

You’ve likely heard the term “Double Check” by now.  If not, you’ve undoubtedly missed most major sporting events in the past few years.  A clever slogan to assist in advertising for a major insurance company leaves most people wondering what it actually means, although most interpret that the concept is connected to Aaron Rogers, quarterback for the Green Bay Packers.

Frankly, the term has nothing to do with football, unless you feel that Aaron’s audible check at the line of scrimmage counts.  While it makes sense for Aaron to double check the defensive coverage before running a play, the ad is actually encouraging you to double check your insurance coverage for the opportunity to receive discounts.

Nowadays, most insurance carriers provide for discounts or, more appropriately termed from an underwriting perspective, premium credits.  For instance, if you have a back-up generator to protect your home from the effects of a power outage, there typically is a credit that helps to reduce your premium.  There are more examples of available credits; however, the point is that you should check to see if you are appropriately underwritten, based upon the reality of your situation.  Many times, people go for years, despite improvements and alterations to their homes, without reviewing their coverage.  It helps to review your coverage limits, what’s actually covered and any details that have changed regarding your home (i.e. the installation of an alarm system, etc.) or autos and other valuables every year.

Additionally, most insurance companies also provide a discount for having more than one line of coverage placed with the same company.  Termed as bundling, if your home, auto, umbrella liability and collections policies are all placed with the same company, odds are that you are receiving a bundling discount on your premium.  Most of the time, it takes only having more than one policy with the same company to receive a bundling discount.  Discounts vary across companies and based upon the risk.

So there you have it.  That’s what the double check is all about.  Now that you understand the concept, you can take the appropriate steps to proactively manage your play regarding your insurance coverage.  While one major insurance company has mastered the art of advertising the concept, the savings and, more importantly, the discipline is available across the market, notwithstanding the company with whom you are insured.