Fewer people buying off-Marketplace coverage, study finds

The upcoming open enrollment period could be busy following record-high Marketplace enrollment early this year, according to a new report from KFF.

“A key takeaway from this analysis is that as Marketplace enrollment has reached record highs with enhanced premium assistance, fewer people are buying coverage off-Marketplace, but the overall individual market is nonetheless growing,” the report said.

As of early 2023, an estimated 18.2 million people had individual market coverage, the highest since 2016. With passage of enhanced subsidies in the American Rescue Plan Act, increased outreach and an extended enrollment period, 2021 marked the first year since 2015 when there was an increase in individual market enrollment. The subsidies didn’t simply bring people from off-Marketplace plans to the Marketplace but also helped drive overall individual market enrollment higher in early 2023, an increase of about 29% from early 2020.