Feds unveil new Obamacare ads that target low income consumers

WASHINGTON — Federal health officials are targeting low-income consumers with new advertisements unveiled Thursday that emphasize the affordability of health insurance, two days after new data showed the average increase in premiums was higher than for 2015 plans.

In a meeting with reporters, Department of Health and Human Services Secretary Sylvia Burwell emphasized that about 80% of consumers shopping on the federal Healthcare.gov exchange that serves 38 states are eligible for tax credits that lower their premiums to less than $100 a month.

Open enrollment begins Nov. 1 for the federal and state exchanges set up under the Affordable Care Act and those who want coverage starting Jan. 1 must sign up by Dec. 15.

HHS said Tuesday that the average premium increase for Healthcare.gov was 7.5%. That's higher than the 5% increase for 2015 plans, but lower than the double digit increases paid by many people who had individual plans before the Affordable Care Act.

The new ads will highlight the tax credits that can decrease premiums for people earning below 400% of the federal poverty limit, which is $97,000 for a family of four. They are targeted to attract consumers who don't know the credits are available or still don't think insurance is necessary or affordable given housing costs and other more pressing concerns.

"These consumers are hard to reach," Burwell said.

Healthcare.gov premiums have bigger increase for 2016

Burwell downplayed the significance of this week's announcement that the non-profit insurance cooperative Arches Health Plan in Utah plans to close. Arches becomes the 10th of 23 non-profit insurance cooperatives created under the ACA to shutter. This limits competition in some areas around the United States.

"Shopping around is important," she said. "That's why we’ve said that all along."

What's your enrollment plan? Tell us at healthinsurance@usatoday.com