Monday, November 07, 2016

SHOP Sweat

How desperate are the rocket surgeons in DC to make something - anything, really - of the Small Business Health Options Program (SHOP)? This desparate (via email from CMS):

"Do you know that from November 15 through December 15, small businesses can enroll in SHOP Marketplace coverage without meeting a Minimum Participation Rate (MPR) requirement? Think about your new and existing clients who may not otherwise be able to meet the minimum participation requirement."

Now why is this a big deal?

Well, let's just say that the response to the program has been underwhelming:

"After nearly two years in operation and millions of dollars spent in development ... about 85,000 people, from 11,000 small businesses, have coverage through the [SHOP]."

So now we know why the gummint would (illegally, natch) lift its own requirements. But then one is faced with the dilemma of Chesterton's Fence:

Carriers require certain participation levels because of "adverse selection;" that is, if only those with health problems sign up, then the carrier is going to be losing money very quickly since there's no corresponding offest from healthy employees.

But then, understanding basic insurance principles was never a strong suit of O'care proponents in the first place.
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