When millions of Americans go to shop for insurance this fall, many will want to know how the Affordable Care Act impacts them. As an insurer, providing users with an estimate of what kind of financial assistance they may be eligible for could greatly inform their shopping experience – giving them a better idea of which products are in their budget, and whether they should shop your Health Care Marketplace products.
Take a closer look at some of the benefits and risks of building your own subsidy estimator.
A subsidy estimator can help users to determine whether they should be shopping On-Exchange or Off-Exchange Products. Critically, it can steer users to your On-Exchange Products through your Exchange-Integrated shopping experience, avoiding exposure to your competitors. For shoppers wondering if they should conduct an Official Eligibility Determination, a subsidy estimator can provide helpful guidance, giving users a sense of how much a Premium Tax Subsidy Amount might be. Because this valuable information is available directly from your shopping site, a subsidy estimator can help boost brand loyalty and consumer confidence.
Managing expectation around accuracy is the most significant risk to building a subsidy calculator. The availability and variance of the portion of the premium that contributes to the Essential Health Benefits of the Second Lowest Cost Silver Plan is still unknown. A basic subsidy estimator would not accommodate atypical Coverage Families, or exception scenarios such as Native American rules or Insufficient Employer Coverage. A significant challenge will be to communicate the assumptions built in to your calculations without overwhelming the user.