Obamacare Simplification – Is That Like Jumbo Shrimp?

Summary: A new and improved, simplified version of the application for health insurance benefits under Obamacare (aka healthcare reform) is due to be released. Obamacare simplification — is that an oxymoron, like jumbo shrimp?

The original version of the application for health insurance benefits under healthcare reform was so long (21 pages) and so complex that the average American would have had an extremely difficult time completing the form. The original application had been compared to completing annual tax forms, or to healthcare reform itself (a 900-plus-page document with provisions becoming effective from 2010 through 2015). The form is being shortened and simplified down to three pages. Finally, there is a document the average American may be able to understand.

Obamacare Simplification

It is important to tailor documentation to the majority of its audience. Those applying for insurance through the health insurance exchanges are more likely to be unemployed, from lower income brackets, and/or to have less formal education. The health insurance exchanges will provide marketplaces in which to purchase insurance. Simplifying the application form is a wonderful step in the right direction. If the forms are too complex, many Americans will simply opt not to complete them — or at least weigh the option of not completing them and taking the penalty instead of trying to muster their way through the form.

There will still be complexities with the forms. Whereas previous applications were more heavily weighted toward health questions, the new applications will have a large financial component. Applicants will have to provide proof of income in the form of tax returns, pay stubs, and other financial validation. This information will be used to determine whether the applicant qualifies for government subsidies. Individuals who earn less than four times the federal poverty level will be eligible for financial assistance. A caveat should be inserted here: if you underestimate your income, you may have to pay back a portion of the subsidy. The overages and shortages will become part of the annual tax return process.

The simplification process is definitely a step in the right direction. While no document or process is perfect, hopefully this will provide more opportunity for individuals to be covered for health insurance. Another hurdle which may come to light is the application process itself. The plan is to have applications online. While online is a terrific time saver and reduces physical paperwork, not all Americans are computer savvy and/or can afford computers. Hopefully there will be either a paper process to accommodate those who aren’t comfortable with computers or, at a bare minimum, access to assistance via physical kiosks or by phone.

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