Millions of Consumers Opt for Non-Exchange Individual Health Plans

Millions of U.S. residents are forgoing the Affordable Care Act's exchanges to purchase plans on the individual market for a number of reasons, including opposition to the law, Modern Healthcare reports.

According to estimates, more than eight million U.S. residents have purchased non-exchange individual market plans. That represents about 50% of the total individual market sign-ups when including exchange plans, according to Modern Healthcare.

Some reasons for individuals purchasing off-exchange individual market plans include:

• Exchange plans being more likely to have narrow provider networks;
• Having previously purchased such coverage prior to the ACA;
• Opposition to the ACA; and
• Not being eligible for subsidies to help purchase exchange coverage.

According to Modern Healthcare, many people who are not eligible for subsidies fall into the so-called "family glitch," in which individuals cannot afford coverage for their families through their employer but have incomes too high to qualify for subsidies (Herman, Modern Healthcare, 5/8).