Tuesday, October 16, 2012

Why are health insurance companies forced into specific Enrollment Periods by the government

Why are health insurance companies forced into specific Enrollment Periods by the government?
For example, in this part of the US, you can only enroll in a certain health insurance company between the weeks of 11-15 and 12-31. Apparently CMS, the regulatory healthcare branch of the government, enforces this rule.

Doesn't that just make everything more difficult for the customers, providers, companies, and CMS itself? An entire multi-billion dollar business only gets to work for 8 weeks out of the year. Am I missing something, here?
Insurance - 3 Answers
Random Answers, Critics, Comments, Opinions :
1 :
You're missing something. Perhaps that's a special program. Health insurance is available 24/7 and 365. That's also a common marketing scam telling people that there's an 'enrollment period.'
2 :
Where are you getting your information? "Open enrollment" periods are usually something incorporated into employer group plans - not mandated by "CMS." Insurance (presently) is largely regulated at the state level.
3 :
The IRS did this, to keep employees from jumping on for one month, putting in the claims, and then dumping the insurance. Employers didn't object, because it's a lot of paperwork and effort, if an employee wants to do that six times a year. It actually simplifies things drastically, AND, helps prevent adverse selection issues. **This is only for GROUP plans. As the Pickle mentioned, private coverage does NOT have these limitations.**

Read more discussions :