Feds say more than 155,000 Arizonans signed up for health plans

• More than 155,000 Arizonans signed up for Affordable Care Act health coverage beginning Jan. 1.

More than 155,000 Arizona residents have signed up for Affordable Care Act health coverage that is scheduled to begin Jan. 1, the U.S. Department of Health and Human Services said Friday.

That figure includes more than 60,000 Arizona residents who re-enrolled on the federal marketplace in the week ahead of the Dec. 17 deadline for people to complete enrollment to guarantee coverage next year.

More than 8.2 million consumers have signed up for coverage or re-enrolled in an existing plan in the 38 states using the federal marketplace, compared with 6.4 million at the same time one year ago, according to HHS officials. Those figures do not include sign-ups in states that operate their own insurance exchanges.

"We saw record demand last week, the most traffic we have ever seen," HHS Secretary Sylvia M. Burwell said Tuesday during a conference call with community organizations assisting with enrollment.

People who have enrolled in a plan must pay their monthly premium before they can begin using their health-insurance plan, so the HHS-released figures do not automatically translate into paying customers for private insurers that sell plans over the marketplace.

HHS reported last year that more than 204,000 Arizona residents had enrolled in marketplace plans as of February, but only slightly more than 165,000 residents activated those plans with paid monthly premiums as of March 31.

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By comparison, more than twice as many Arizonans, 387,000, have gained coverage through Medicaid's expansion and restoration, funded through the Affordable Care Act and an assessment paid by hospitals, according to the state.

Open enrollment for marketplace coverage is scheduled through the end of January, so people can still get coverage and cost-sharing subsidies over the marketplace.

Those who don't get coverage are assessed a financial penalty unless they qualify for an exemption. The  penalty in 2016 will jump to the greater of $695 per individual or 2.5 percent of income.

One added wrinkle in Arizona's sign-up this year is the closing of a non-profit health-insurance co-op, Meritus Health Partners, which will shut operations Dec. 31. Meritus provided coverage for 59,000 Arizonans. Meritus customers can still choose a new plan during the last week of December and get coverage as of Jan. 1.

Days before open enrollment began Nov. 1, the Arizona Department of Insurance put Meritus under supervision and suspended the insurer's ability to sell new policies or renew current ones. State regulators determined that the insurer did not have strong enough finances to last through 2016.

Arizona health insurance co-op Meritus to close shop Dec. 31

After initially fighting the suspension order, Meritus agreed to shut down operations because it could not lure outside investors and still meet the requirements of the federal government's co-op program.

The non-profit was one of 23 co-ops created under the Affordable Care Act to compete with for-profit insurers. But many have struggled and more than half have failed.

Arizona residents who want enrollment assistance can visit coveraz.org to schedule an appointment with a helper.

Avoiding the tax penalty is likely motivating some consumers to get coverage, said Allen Gjersvig, of the Arizona Alliance for Community Health Centers. He expects to hear from more such consumers after they receive their W-2 tax forms in the beginning of 2016.

“It’s been a topic of discussion for some consumers,” Gjersvig said.