CMS streamlines direct enrollment by allowing full third-party enrollment, bypassing Healthcare.gov
New process allows them to start and finish their application through a third-party website managed by direct enrollment partners.
In another action that removes the federal government as middleman for health insurance, the Centers for Medicare and Medicaid Services on Wednesday announced a new process for direct enrollment that bypasses Healthcare.gov.
Starting in year five of Affordable Care Act open enrollment in 2018, CMS will no longer redirect individuals signing up for exchange coverage through a third-party website to Healthcare.gov to complete their application.
While consumers may still sign up through Healthcare.gov, the new process allows them to start and finish their application through a third-party website managed by direct enrollment partners.
[Also: CMS pitches end to small businesses using Healthcare.gov]
CMS said it will work with these private partners, who will use a proxy direct enrollment pathway to collect consumer information and input that data into Healthcare.gov, CMS said.
Entities wishing to participate in proxy direct enrollment will retain a third party auditor that meets CMS's approval as well as privacy and security standards. Third party audits must take place prior to open enrollment. CMS said it would review and approve auditors and direct enrollment entities by Nov. 1.
In prior years, consumers who signed up for health coverage using a third party website were redirected to Healthcare.gov to complete their application.
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Consumer feedback showed that the process was confusing and made it harder to finish the application, while the new method offers consumers easier access to healthcare comparisons and coverage, CMS said.
The guidance is part of a larger effort intended to stabilize the health insurance market by providing more ways for consumers to access coverage, CMS said.
Earlier this week, CMS said it was replacing a mandated Affordable Care Act program for small businesses in the 33 states where the federally facilitated marketplace operates under the Affordable Care Act. Instead of businesses enrolling their employees through Healthcare.gov, employers can access coverage through an agent, broker or an issuer of a plan, starting on Jan. 1, 2018.
"This is another important step to help create stability in the health insurance market," CMS Administrator Seema Verma said of the individual option. "It is common sense to make it as simple and easy as possible for consumers to shop for and access health coverage. It is time to get the federal government out of the way and give patients the best tools to make their own healthcare decisions."
Twitter: @SusanJMorse
