Bill Overview
Title: Improving Awareness of Health Coverage Options Act of 2022
Description: This bill modifies the notification requirements with respect to eligibility for certain health coverage options due to a qualifying event (e.g., loss of coverage due to termination of employment). For example, a health insurance plan must provide a clear explanation that an individual who is eligible for COBRA (Consolidated Omnibus Budget Reconciliation Act) continuation coverage may be eligible to enroll instead, with financial assistance, in a qualified health plan offered through a health insurance exchange.
Sponsors: Rep. Harder, Josh [D-CA-10]
Target Audience
Population: Individuals transitioning from employer-based health insurance due to a qualifying event
Estimated Size: 30000000
- The bill impacts individuals who are transitioning from employer-provided health insurance to individual health insurance plans due to a qualifying event, such as job termination.
- Individuals eligible for COBRA continuation coverage are primary targets, as the bill focuses on providing alternative options to COBRA.
- The bill targets those qualified for health insurance exchanges who may also qualify for financial assistance.
- In the US, the target population would be employees who cycle through job transitions, which affects their health coverage status.
Reasoning
- The policy primarily affects individuals undergoing job transitions who would typically consider COBRA for maintaining their health coverage. This is a scattered yet significant portion of the working population, given the regularity of job changes in the US.
- To include different perspectives, the interviews focus on individuals across a range of socio-economic backgrounds, including those who might not be significantly impacted due to existing awareness or alternative arrangements.
- The policy is limited by a fixed budget. Therefore, reaching the most common demographics who transition frequently between jobs could create varying effects based on their current understanding of health coverage.
- The policy's impact may not be immediate for all individuals, but it is expected to grow as awareness spreads, thus showing more significant differences in wellbeing over a longer period.
- Simulations include both high and low impact range scenarios to reflect diverse experiences; individuals who are less aware initially will likely see more significant changes in their wellbeing.
- Since the budget is limited, the policy might prioritize outreach in regions with higher job transition rates to maximize immediate impact.
- Overall, the aim is to gauge a diverse range of stories to assess both the direct and indirect influence of this policy on wellbeing over time.
Simulated Interviews
Software Engineer (Austin, TX)
Age: 45 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 12/20
Statement of Opinion:
- This policy sounds helpful because navigating COBRA and other options has been confusing for me.
- I'm hopeful that I will better understand the choices available to save costs on health coverage.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 9 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 8 | 7 |
Graphic Designer (New York, NY)
Age: 32 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 20.0 years
Commonness: 8/20
Statement of Opinion:
- Freelancers don't always know where to find the right information on health plans, so I really hope this clears up some of the confusion.
- Anything that helps people like me avoid COBRA's high fees is welcome.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 9 | 6 |
| Year 10 | 9 | 6 |
| Year 20 | 8 | 6 |
Retired early, former Corporate Executive (Chicago, IL)
Age: 60 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 10/20
Statement of Opinion:
- It seems like a decent measure, but at my age, I'm mostly thinking about stable options like Medicare and not jumping plans too often.
- It won't move the needle much for me personally.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 5 | 5 |
Startup Employee (San Francisco, CA)
Age: 25 | Gender: other
Wellbeing Before Policy: 6
Duration of Impact: 15.0 years
Commonness: 9/20
Statement of Opinion:
- I think knowing my options is super valuable, especially when you're frequently changing jobs.
- Helps cover the period between jobs without stressing too much about healthcare.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 9 | 6 |
| Year 10 | 9 | 6 |
| Year 20 | 8 | 6 |
Hospitality Manager (Miami, FL)
Age: 40 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 15.0 years
Commonness: 11/20
Statement of Opinion:
- Anything to make insurance easier to understand is a win for me.
- I usually find myself lost in the jargon, especially after being laid off.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 8 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 8 | 5 |
Marketing Specialist (Seattle, WA)
Age: 29 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 14/20
Statement of Opinion:
- On a temporary contract, so consistent insurance information could keep me steady while transitioning.
- I'm cautiously optimistic about how it helps while I'm in between, but we'll see.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 9 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 8 | 6 |
HR Specialist (Los Angeles, CA)
Age: 34 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 10.0 years
Commonness: 15/20
Statement of Opinion:
- As someone who educates staff on benefits, clearer alternatives to COBRA are exactly what's needed.
- Hopeful this approach simplifies transitions for employees.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 9 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 8 | 8 |
Farmer (Rural Nebraska)
Age: 50 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 3.0 years
Commonness: 7/20
Statement of Opinion:
- It's not clear if this policy will reach as far out as my rural area where options are limited without COBRA.
- Knowledge improvement is great in general, but I drill down the details myself.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 5 | 5 |
Retail Worker (Atlanta, GA)
Age: 27 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 13/20
Statement of Opinion:
- Coming back to work soon, so knowing my insurance options is important to me and my baby.
- Even if I don't love dealing with insurance, this looks like a good first step.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 7 | 5 |
| Year 20 | 7 | 5 |
School Teacher (Boston, MA)
Age: 53 | Gender: female
Wellbeing Before Policy: 9
Duration of Impact: 0.0 years
Commonness: 5/20
Statement of Opinion:
- Personally, I don't see a big need for this since I've always had stable coverage.
- Might help if I were to look at job changes in the future though.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 9 | 9 |
| Year 2 | 9 | 9 |
| Year 3 | 9 | 9 |
| Year 5 | 9 | 9 |
| Year 10 | 9 | 9 |
| Year 20 | 9 | 9 |
Cost Estimates
Year 1: $20000000 (Low: $15000000, High: $25000000)
Year 2: $21000000 (Low: $15700000, High: $26200000)
Year 3: $22050000 (Low: $16200000, High: $27550000)
Year 5: $23200000 (Low: $17100000, High: $29300000)
Year 10: $24500000 (Low: $18000000, High: $31000000)
Year 100: $35000000 (Low: $26300000, High: $43700000)
Key Considerations
- The actual cost and savings are highly dependent on the population shift from COBRA to marketplace plans and the resulting long-term health outcomes.
- There may be variances in implementation costs based on the complexity of updating corporate communications and information technology systems.
- The economic environment, particularly inflation and employment rates, can affect the scale and timing of cost and savings values.