State health insurance marketplaces celebrate a banner year with record enrollment numbers, thanks to expanded federal subsidies that make coverage more affordable for low- and middle-income Americans.
WASHINGTON:
The State Marketplace Network (SMN), a coalition of 21 state-based health insurance marketplaces, celebrated a decade of achievement this year, marked by both a significant milestone in their ten-year journey and record-breaking enrollment numbers.
Over 21 million people across the nation gained access to health insurance through the marketplaces in 2024, a substantial increase reflecting a growing reliance on these resources.
Notably, more than 5 million were new enrollees, indicating a fresh wave of individuals seeking coverage. Experts attribute this surge to enhanced federal tax credits introduced through the American Rescue Plan Act and subsequently extended by the Inflation Reduction Act.
These subsidies have significantly improved affordability for low- and middle-income residents, making marketplace plans a more attractive option.
State leaders across the country acknowledge the critical role these financial enhancements have played, particularly for individuals who transitioned off Medicaid due to the recent unwinding of continuous coverage requirements prompted by the end of the COVID-19 public health emergency.
The marketplaces have successfully assisted many of these individuals in finding new coverage options. As a key pillar within the healthcare ecosystem alongside Medicare and Medicaid, the marketplaces play a vital role in ensuring a comprehensive coverage continuum for those who need it most.
This, in turn, strengthens the overall health market infrastructure by expanding the insured population and ensuring greater access to necessary healthcare services.
"These record-breaking enrollment numbers translate to millions of people gaining access to lifesaving and life-changing healthcare," said Devon Trolley, executive director of Pennie, Pennsylvania's state-based marketplace. "The enhanced federal subsidies have made a substantial difference for residents in our state. We've witnessed a significant rise in enrollment, with over 80% of our customers receiving subsidies that have lowered out-of-pocket costs and expanded access to coverage. This is not only improving individual well-being but also promoting health equity as we see increased enrollment among Hispanic, Black, and American-Indian/Alaska Native populations."
Beyond affordability, the state-based marketplaces have cultivated a wealth of knowledge over the past decade on how to effectively reach and enroll consumers.
This expertise is reflected in the targeted messaging campaigns they deploy, which were strategically adapted during the recent open enrollment period to resonate with individuals transitioning off Medicaid.
Additionally, the marketplaces continuously refine their enrollment processes to streamline applications and work collaboratively with community-based organizations that provide in-person application assistance.
"Since its inception, Your Health Idaho has been dedicated to serving Idahoans in a way that reflects our state's values," said Pat Kelly, executive director of Your Health Idaho. "We prioritize fiscal responsibility while striving to deliver a world-class experience. This commitment has translated into providing Idahoans with a pathway to affordable, high-quality health insurance in a manner that best suits their needs."
The focus extends beyond enrollment, as state marketplaces actively seek to ensure that enrollees have access to plans that provide optimal coverage. This commitment encompasses initiatives to improve health literacy, promote effective benefit design, and explore additional affordability programs to address the ever-evolving needs of their constituents.
"Our deep understanding of the unique needs of our residents positions state-based marketplaces perfectly to deliver access to affordable health coverage for millions across the country," said Audrey Morse Gasteier, executive director of the Massachusetts Health Connector. "We're proud to be part of this network and its remarkable impact. Here in Massachusetts, the Health Connector has expanded access through our ConnectorCare program, which offers wider eligibility for affordability assistance. We also leverage a robust network of community-based partners who provide critical enrollment support in multiple languages."
While individual marketplaces tailor their policies to address the specific needs of their state's residents, the SMN fosters a collaborative environment where best practices and insights are readily shared.
The network's recently launched website serves as a valuable resource, providing a comprehensive overview of the SMN's collective work alongside individual state marketplace activities.
This knowledge exchange is instrumental in ensuring that the state-based marketplaces remain at the forefront of providing accessible, affordable health insurance for all.