Small biz direct enrollment to last through 2015 open enrollment

MONTPELIER — The Shumlin administration told lawmakers Tuesday that small businesses will have the option to continue directly enrolling in health care insurance plans during the next open enrollment period slated for this fall.

Director of Health Care Reform Robin Lunge delivered the update to the Senate Finance Committee early Tuesday afternoon. Mark Larson, commissioner of the Department of Vermont Health Access, delivered the same message later to the House Health Care Committee.

“The good news that I have is that the feds have approved the ability for us to continue with direct enrollment moving forward through the 2015 open enrollment period for 2016 plans and our intention is to allow this as an additional option,” Lunge said.

Direct enrollment with the state’s two insurance carriers was a contingency plan offered by Gov. Peter Shumlin when the state’s federally mandated online insurance marketplace, Vermont Health Connect, failed to function properly at launch last October. Small businesses were able to bypass the exchange and deal directly with insurers.

Employees of small businesses with 50 or fewer employees are required by state statute to obtain health insurance through Vermont Health Connect. But the website still does not allow for online enrollment. Administration officials say they expect it to be working when the 2015 open enrollment period begins in October.

Larson said the direct enrollment option is in no way an indication that the exchange website will still not be fully functional by October. Rather, it provides Vermonters with additional ways to enroll in qualified health insurance plans, he said.

However, direct enrollment with insurance carriers provides a limited choice of insurance plans. Individual using the website can choose from 18 plans between the two carriers. Small business employees can only choose from four plans.

Larson said the Centers for Medicaid and Medicare, which has approved the state’s request to continue direct enrollment, “is mindful of employee choice.” Larson said conversations with insurers are taking place to try and expand options.

“They are very interested in making sure that employees have the greatest ability to have choice in their plans as possible. That will be one of the conversations that we have, is how to do direct enrollment so employees continue to have access to as many plans as possible through their employer.”

House Health Care Committee Chairman Rep. Michael Fisher, following Larson’s appearance, said he is happy the direct enrollment option will be preserved for the next enrollment period.

“I can’t tell you how many times I’ve heard that this piece of IT structure or that piece will be ready in time, and so I don’t have any confidence that anything is going to work until I see it working,” he said. “I think Vermonters are comfortable going through the carriers directly and I’m pleased that the administration moved to a place that is supporting that. So, I think that’s a good thing.”

neal.goswami@timesargus.com

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