Obamacare's Second Open Enrollment Period Ends With Glitches, Headaches, Extensions, Delays—and More Surprises to Come



Obamacare's second open enrollment period—the annual window during which anyone can sign up for insurance in the law's health exchanges—ended on Sunday. It went out with a whimper. A series of technical glitches related to the site's income verification operation meant that, on the busy final day of sign-ups, many applicants couldn't get through, according to The Fiscal Times.

As a result, the last-minute process was, like a lot of things associated with Obamacare, kind of a headache. A federal government employee who lives in Virginia, which is part of the federal exchange system, trying to sign up a relative for coverage emailed me with some of his frustrations.

"Today's some sort of deadline, they're e-mailing me like mad," he wrote. "I signed in to try and fix that and tell them that my [relative] already got insurance. I was able to log in, but that's about all, there were buttons, I clicked them and nothing works. This is a solved problem, Amazon, Google, Facebook, hell every bank and probably 50% of small businesses have a more functional website than this."

As it turns out, the official deadline is only sort of the official deadline. Because of the last-minute computer errors, the administration is allowing a one-week extension for anyone who attempted to sign up but was blocked by technical problems. According to USA Today, the glitches prevented roughly half a million enrollments. How will the system know if someone attempting a late sign-up was previously blocked or not? They'll have to attest that they did. In other words, it's an extension for pretty much anyone willing to say there were problems.

It's not just the federal exchange, which covers 37 states, offering an extension. USA Today also reports that "most" state-based insurance portals are pushing back the deadline too. The deadline, in other words, is not really a deadline.

In the end, the newly extended deadline may not be the real deadline either. The administration is apparently considering an additional "special enrollment period" to coincide with tax filing season.

Here's the argument, such that it is: Some people may file their taxes and discover they owe a penalty for going uninsured last year. But having not signed up this year either, they won't have any easy option to get coverage and thus avoid the penalty next year. Several Congressional Democrats have urged the administration to create this additional sign-up window, and Health and Human Services Secretary Sylvia Matthews Burwell suggested last week that the option was being considered, according to Bloomberg News.

There is a practical dimension to this tweak; health insurance sold through the exchanges runs the calendar year, which helps create tax-time headaches. It is yet another way that the law was shabbily and thoughtlessly designed.

But as The New York Times notes, there is also a political dimension:

A special enrollment period would serve three purposes of great interest to the administration, health policy experts in and out of the government said. It would increase the number of people with health insurance, a goal long sought by Mr. Obama. It would reduce the number of people who must pay tax penalties, thus reducing anger at the White House and opposition to the Affordable Care Act.

In addition, providing extra time for enrollment would increase the number of people who received health insurance subsidies and thus had a personal stake in a Supreme Court case challenging payment of the subsidies in more than 30 states.

Part of the administration's legal strategy is to emphasize the disruption that would be caused by the Supreme Court ruling that federal exchange subsidies are not authorized by the law. But the administration is not only looking to emphasize the potential disruption; they are also looking for ways to increase it, by signing up more people. (Needless to say, the administration has not made a habit of informing people in the federal exchanges that their subsidies are at risk.)

Meanwhile, tax season looks like it will be frustrating, or at least uncertain, even for those who are already uninsured under Obamacare. Slightly more than half—about 53 percent—of people receiving subsidies under the law will be on the hook to repay some or all of what they were given, according to CNN, based on early returns data from Jackson Hewitt. For others whose subsidies were too small, the return will be larger than expected.

That's a pleasant surprise, but the point is that it's a surprise. Because Obamacare determines subsidies up front based on estimated income for the coming year, and then formally calculates them later on at tax time, it's not certain which side of the ledger you'll fall on until it's too late to change. With Obamacare, you never quite know what's coming next.

NEXT: FEMA Dramatically Increases Reconstruction Project Budget for No Apparent Reason

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  1. You know who else had deadlines that kept getting pushed into the future?

    1. my parents?

      1. +Two and a half….

    2. The Soviets got to Berlin as quick as they could.

      1. With the arguable exception of the pause before Warsaw in 1944.

        1. That was a twofer for Stalin. It both killed a few Nazis and a lot of Jews. And it gave the Red Army a break to rest and replenish.

          1. Yes. Although I’ve always though that the idea he paused for the sole purpose of allowing the Nazis to crush the Warsaw uprising first was a little overplayed.

            WWII offensives had a clear pattern. Build-up, massive initial advances/encirclements, followed by a long down time as the encircled armies were rounded up, the advancing armies were reorganized and refitted, and supplies were stockpiled for the next big jump.

            The Soviets would have had to pause anyway, although they certainly didn’t go out of their way to advance any further than needed.

          2. Not a whole lot of Jews, but a whole lot of Poles. Between the ones killed in the uprising, and then the ones executed by the Red Army Stalin effectivly eliminated the entire cadre of independent Polish gov’t.

  2. Apparently, regression testing is for wimps.

    1. Dude, I’ve seen rollouts like this (usually though they were internal company rollouts, but similar because in all such cases there is almost no accountability for a tremendous clusterfuck). The scrambling behind the scenes is EPIC.

      1. As have I.

        Well, never this bad.

        Ive also been involved in bad rollouts that because of accountability were fixed in 24 hours. Or else.

      2. My favorite part is when the people who can and should be fixing the problem get called into random spread the blame meetings every time they sit down at their desks.
        I always wanted to have this conversation: “Look, I told you last week we weren’t ready, you said go anyways. Now we’re all fucked like I told you we would be. If you aren’t going to listen to me anyhow, can I go try to fix the problem?”

        1. I wasnt quite that blunt, but I basically had that conversation with a client.

          The client tried to have me fired. I guess he didnt realize I was an owner.

          1. And that client no doubt has a college edumacation and passed an HR screening process. So he totally knows what he’s doing.

            1. He was the son-in-law of the owner.

              But, yeah, Im pretty sure he had a college degree.

              He was very top down. Ideas dont flow two ways. I wouldnt have worked for that company ever. They werent even a great client, regularly bitching about their invoices.

              But they were, for a few years, big money, so we put up with them.

    2. Regressive is for Republicans. Democrats use progression testing.

  3. I wonder how many wish this had just died. Had the republicans killed it they wouldn’t have swept into office. They wouldn’t have ammo. It’s just always been such a shitty idea and it makes me sad.

  4. This is a solved problem, Amazon, Google, Facebook, hell every bank and probably 50% of small businesses have a more functional website than this.

    Can anyone explain why businesses whose solvency relies on functioning websites would have functioning websites while an institution that draws its livelihood via taxation would not have a functional website?

    Also, can anyone explain why we love our kids more than some stranger’s kids? It’s all so weird to me.

    1. I think the point is, why can’t they just hire some dude from India to clone amazon and google so it works?

      That’s what freelancer.com is for.

    2. Your answer in one chart. Hooking up dozens of old databases in different government agencies is a huge, huge problem. Years ago I said it might never work, and it’s still not working. I believe that many of the back-end functions are still being done by hand.

      Over 50% of large IT projects like this eventually fail, even ones that are within single companies or government departments.

  5. I got lucky and avoided the penalty. Evidently if you change jobs and have to wait for open enrollment they give you a pass.

    1. i thought if you changed jobs it counted as a “life event” and you didn’t have to wait for open enrollment. Don’t worry, bro, I’m no snitch.

      1. My wife was on my insurance and I changed jobs. The new job has a penalty for spouses who can get coverage from another employer. So my wife, who lost my insurance, had to wait for open enrollment at her job because she wasn’t a new hire.

        1. I’ll back that story when they ask me to testify.

          1. Thnx bra!

          2. I bleeve it’s:
            ‘You lie. I’ll swear to it!’

      2. Another life event that excuses you from the penaltax is a copy of a disconnect notice from your electricity company.

  6. “Today’s some sort of deadline, they’re e-mailing me like mad,” he wrote.

    one size fits all GS asshole. and it’s more convenient for everyone to sign up at the same time. you don’t expect them to work-work year round do you?

  7. With Obamacare, you never quite know what’s coming next.

    Wanna know how I know you’re not an Austrian, Suderman? ‘Cause you don’t know what’s coming next with Obamacare, ceteris paribus.

    1. With Obamacare, you never quite know what’s coming next.

      Perhaps not in detail. The broad strokes? Yeah, you can pretty much predict those.

    2. “What’s coming next?”

      Busting state budgets and waiting times for folks on medicaid.


  8. It took what, 40 years for the government to finally come around and admit that it’s cholesterol warnings were BS?

    ObamaCare is hear to stay.

    Or maybe cholesterol is a killer. ObamaCare’s survival might depend on people dying quickly and early.

  9. I have no health insurance. The thought of dealing with this hopeless clusterfuck fills me with such dead and loathing any time I contemplate it, i just keep putting it off.

    1. Me too,

      I’ve been self insured since the my business tanked in 08. My only regret is paying over $100k for health insurance in the preceding 12 years.

    2. It should be easy for you to manipulate a disconnect notice from your electric company.

      That’s is defined as a “life event’ that keeps you from having to pay the penaltax.

      1. Does this also re-open enrollment?

  10. Like I said last enrollment period, all these problems are just at the beginning, the sign up phase. Think about how much more complicated all the subsequent phases are. It’s like you went to the restaurant and the greeter had considerable trouble just opening the door to let you in.

    1. I could see that happening. Some French dude desperately trying to rip a door open while I stand on the walkway in my top hat looking at him disappointedly.

      1. With one eyebrow raised over your monocle as he fumbles with the latch.

    2. The databases behind the scenes are a complete clusterfuck because they werent designed to interact.

      The db design should have started from scratch.

      1. No, no no!!!

        All GOOD design starts with some executive’s idea of a really snazzy-looking user interface and gets that part focus-group tested and marketing approved first. THEN you do the easy part – slap a bunch of code together so that the whole things works outside of a demo environment. That part is easy! You already know where the buttons go and what they are supposed to do when you click on them!!!

        1. That literally happened. They spent 70% of their time having weekly meetings about fonts and colors. 2.5 years out of 3 passed before the executive leadership got to discussing core functionality.

          1. Politics is marketing. They dont understand functionality. Just selling.

            1. The functionality can be counted on to take care of itself. Because, government.

              1. There is an atlas shrugged quote that goes here, but I dont remember it well enough.

          2. They do fonts and colors because it’s easy to say “No, I like that one better”.

            Answering questions about functional requirements would display their ignorance for all to see. No likey.

          3. Cornflower blue! I showed it to m’man here. You liked it, dincha?

    3. Damn the torpedoes, they’re going ahead with fucking up the payment to doctors part. Hooray for that. Were the Republicans smart, they would just pass a law preventing any changes to the Medicaid/Medicare structure until two successful enrollment periods were achieved.

  11. Once I become sufficiently filled with dead, I won’t need to worry about it anymore.

    1. I should have hit that point a long time ago. I fear that like there’s no peak derp, there may be no peak dread for me.

  12. The arrogance is incredible. Hey, there’s a sector of the economy that’s 1/6 of it all with thousands of providers, insurers, generalists, specialists, myriad state regs, etc., I know, let’s get a few hundred people together and add a few thousand pages of law and regulatory central planning on top of that. What could possibly go wrong?


    1. they are in it for the vig. nothing else matters.

      1. More effort and cost goes into dividing the vig of the medical mafia than providing health care.

        That’s what the “health care” industry is – dividing the shake down of a captive population which isn’t free to buy medical good and services from whom they want.

        1. Absolutely. $70 dollars for a bag of saline, $90 for a Tylenol, I have a huge pile of my wife’s medical bills to prove it. But there is so much more; like deals with the insurance companies, wherein the hospital is allowed to overcharge for routine surgeries, but then charge at a loss for maternity care.
          The system was rotten before, and they just built a huge new edifice on top of it.
          BTW and OT: if anybody cares, I have arrived back in Denver, and am so glad to be home. If any body knows of a good job, lemme know.

    2. How hard can it be? No, literally, that’s what they think. Same as the Soviets and setting every price in an economy.

      1. That’s a good point. What Obamacare is truly missing is a good Five Year Plan.

        1. Sure he does: he plans, in five years, to be retired, rich, and completely unaccountable.

  13. This is what happens when you let anyone who argues for the government to be more customer-focused to come out of their cell and allow them to be around sharp objects.

    Government doesn’t do “customer facing”. The closest the government ever comes to an actual “customer” is when one of their customers is hauled up before the judge for trial or sentencing. But unless you are wearing an orange jump suit, you ain’t no customer. True, customers turn money over to the businesses they patronize. But, and this is a really key distinction here, THEY DO IT VOLUNTARILY BECAUSE THEY GET SOMETHING IN RETURN.

    Being a “customer” of the government is like being a “customer” of the Mafia. Sure, you hand over your money. Sure, you are told that you received something of value in return. But if you can’t decide to not be a customer any longer without risking having important bits of your anatomy blown off in return, then you aren’t really a “customer” in any meaningful sense.

    1. “Being a “customer” of the government is like being a “customer” of the Mafia.”

      The health care industry is a medical mafia, shaking us down for services we need that we’re legally prohibited from getting whom we would choose. It’s no fluke that health care is the most protected racket. Your money or your life.

  14. Why is there a deadline at all?

    I mean if it’s so awesome and the goal is to get more people insured why not just leave it open all year?

    1. This is what I was wondering.

      1. What?!? and allow adverse selection?!?

        The idea is to force people, force them(!), to be financially responsible for their medical care while removing their agency.

        1. Which it doesn’t actually do, but whatever.

      2. It seems to me that they were aping employer based insurance, which has open enrollment because that is when the employer negotiates with new carriers.

        It really makes absolutely no sense in this context.

        1. If you could sign up anytime, you’d wait until you were sick.

          But if course, they have created so many “life events” or other special deals that you could probably find a way to game this.

    2. Because we can’t just allow people to run out and buy insurance after they are already sick! I mean, only a complete moron would let someone who was already sick with an expensive condition to just walk in and buy insurance to cover the treatment. Seriously, what type of stone-stupid, clueless, idiotic person would expect a system like that to do anything but bankrupt the healthy people who were dumb enough to buy into it? You’d have to practically FORCE healthy people to buy coverage under any such straw-man system.

      1. I realize that’s the rationale.

        But it falls apart on a few moments reflection.

        They went out of their way to force insurance to cover pre-existing conditions. And offer excessive subsidies for those that might not be able to afford it. And then give all kinds of waivers to people that refuse to buy it.

        The fundamental idea, that proggies are going to deny care to uninsured people that get seriously ill or injured is preposterous on it’s face. Not gonna happen.

        The whole thing is a ridiculous charade.

        1. The whole thing is an immensely expensive & ridiculous charade.

          Fixed it for you.

        2. It works just like the guaranteed income debate does.

          The Left claims that replacing the existing welfare state with a single guaranteed income stipend will fix everything and that the progs and libertarians can come together and join hands in hailing the new utopia.

          Then, on the 6th day of the first month under the new scheme, we discover a distressingly large number of people who have already spent their monthly stipend and have not paid the rent yet, nor can they afford food for the next 24 days.

          So, we hear heart-rending stories of people who, for abosolutely no fault of their own whatsoever, are LITERALLY STARVING IN THE STREET BECAUSE OF CAPITALISM. And we hear about all the government programs that are agreed to be absolutely essential by everyone who isn’t a childish and compassion-free libertarian.

          And then we learn that some people who make over $150,000/year are receiving stipends. This, as everyone agrees, is a complete travesty and giveaway to the rich engineered by the Koch Brothers.

          And we are back to square one, except with a few trillion more per year in government spending. It’s Win-Win!!!

          1. Sounds like someone has been reading my latest collectivist manifesto, “DAS LEFTOID”

          2. “My boyfriend gambled all of the money away and now my kids can’t eat.”

        3. That’s supposed to be a one-off event.

          Expect any GOP reform to consider it that, and be called heartless, even though the ACA is basically the same.

      2. “already sick with an expensive condition to just walk in and buy insurance to cover the treatment.”I know several serious hard-ass GOP financial angels who believe this is one feature of Obamacare that must be kept.

    3. This thing only works if extremely healthy people pay for things they don’t need. That’s why the deadline. Ok. Let me clarify. This program does not even work in theory without healthy people paying sick people prices.

    4. Because the whole point is to take money. It’s just a tax that they want to pretend is a fee for insurance.

    5. Because people would wait until they got sick before buying in.

  15. And another thing.

    The exchanges are only clusterfucks because the tried to make them some kind of half assed welfare program.

    None of this would be happening if they had made health insurance a financial product with some level of refundable tax credit.

    1. In fact, if you just had McCain’s plan of a tax credit, couple with the billions of dollars for websites and advertising, Beyonce, etc. you’d might have gotten more people insured, as it would be much easier to do.

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  17. What a revelation. Computer glitches in a huge data server! Haven’t seen that before! Oh wait, we did…in the first roll-out which was supposed to them make the ACA a disastrous failure…at least according to you.

    Well, lo and behold, enrollment for this round should exceed 10,000,000.


    But here is the take away from your article: you cite one person signing up with difficulty, but he wanted to take part in the ACA, didn’t he? You originally told us few would. Your own quote:

    “According to USA Today, the glitches prevented roughly half a million enrollments.”

    500,000 who want what the ACA offers, in addition to the nearly 10M who have signed up. Far cry from the doom and gloom predictions you gave us that the whole thing would fall apart.

    Didn’t you learn anything from the first period of sign-ups…the glitches will get fixed. Your failed predictions, however, can’t.

    1. If people want what the ACA offers so bad, why does the government have to fine them thousands of dollars for not buying it?

      1. Listen, I won’t argue with any of you who would prefer health care be handled differently. If you win the next election, maybe you will have a chance to offer an alternative.

        But that was not my point. I was just pointing out Peter had article after article telling us that no one would sign up, the uninsured were “lost” and would not sign up, the young would not sign up.

        Every prediction he made turned out wrong. And this current article telling us how bad the ACA is actually tells you how popular it is…something he said would not be the case.

        1. If you win the next election? Who writes laws anyways? I thought the anti-Obamacare types did win the last election, and the one before that.

          1. Your not actually positing another repeal Obamacare attempt, are you? Its not happening, at least for another 2 years. And even then, don’t tell me you don’t think the GOP will not have to provide an alternative…something they have yet been clearly able to articulate.

        2. Paying taxes has, by measure of its compliance, always been an incredibly popular thing.

        3. Way to ignore the point.

    2. “Of the 7.2 million signed up through federal exchanges, roughly 87%, or 6.3 million, received some sort of financial assistance.”

      Brilliant! If you give away stuff for free, people will log in to take the money. With that kind of insight, it is no wonder ACA has been such a godsend to Democratic congresspeople who voted for it.

    3. It is amazingly popular, isn’t it? It is such a good program and so many people have benefited from it that the Dems are killing in elections ever since its implementation. The Repubs are sick as it is finally entering their tiny little minds they will never, ever control Congress, the Senate, or the WH ever again.

      Or, 10 million people have been forced into buying something they either didn’t want, or had a better cheaper version of before, and as a result the Dems are getting clobbered in election after election.

      1. You had one election that was a clear “repeal it or not” alternative, and that was the 2012 Presidential election. And repealers lost.

        And you would be sadly mistaken if you think the people who bought into policies on Obamacare are disappointed. They are not.

        And by the way, every poll that has asked what should be done with the ACA, the majority of ALL Americans say fix it and make it better. Repealing it isn’t popular at all. And none of the GOP candidates will run on a simple repeal only platform, at least not in the general election.

          1. What is 8%?

            1. Noob.

        1. “And by the way, every poll that has asked what should be done with the ACA, the majority of ALL Americans say fix it and make it better. ”

          Here’s a little reality:

          “As New Enrollment Period Starts, ACA Approval at 37%”

          And did you notice the trend line.

        2. You had one election that was a clear “repeal it or not” alternative, and that was the 2012 Presidential election. And repealers lost.

          No, Mitt was unable to capitalize on the anti ACA emotion because of his original sin in MA, and that’s one of the major reason’s he lost, IMHO

    4. “500,000 who want what the ACA offers, in addition to the nearly 10M who have signed up. ”

      People sign up for free stuff. And stuff that men with guns make them sign up for. There’s no mystery on either end.

      My “health insurance premiums” are simply the latest joint shake down by the government mafia and the medical mafia.

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  19. The functionality can be counted on to take care of itself. Because, government.

    *Gazes morosely toward .45 on shelf*

    1. You know, that weapon was designed at the behest of the US government, right?

      See – government DOES know best…

  20. “Here’s the argument, such that it is: Some people may file their taxes and discover they owe a penalty for going uninsured last year. But having not signed up this year either, they won’t have any easy option to get coverage and thus avoid the penalty next year.”

    I am very skeptical that the type of person who hasn’t heard about the ACA penalties is also the type of person that actually looks at his tax return and understands what he’s seeing. The large majority of people have no idea how their tax returns work or what the various lines on it mean.

    1. “I am very skeptical that the type of person who hasn’t heard about the ACA penalties is also the type of person that actually looks at his tax return and understands what he’s seeing. ”

      You don’t have to be particularly smart to know that last year you paid off your credit cards and bought a giant TV with your refund and this year it’s barely going to cover the fee you paid somebody else to your taxes for you.

      And for the one’s who “owe” this year for the first time in decades, it will be panic mode.

  21. With Obamacare, you never quite know what’s coming next.

    “Obamacare is like a box of chocolates: you never know what you’re gonna get.”

    1. I know what we’re gonna get. And we’re gonna get it, good and hard.

  22. Far cry from the doom and gloom predictions you gave us that the whole thing would fall apart.

    Go read that NYT article about “Insured But Not Covered” and come back and tell us how awesome the Obamacare is.

    HINT- “insurance” not same as “care”

    But don’t worry, all those eggs have been broken in a good cause.

    1. Thanks, I read it, good article.

      No one ever said there weren’t going to be problems. Any intervention as large as the ACA insures there would be. I would encourage you to consider this quote from your article:

      “It is true that the Affordable Care Act has erased some of the more egregious practices of the American health insurance system that left patients bankrupt or losing homes to pay bills. Insurers can no longer deny coverage to those with pre-existing conditions, for example. And the new policies cap out-of-pocket spending so long as the patient receives care within the plan. Most important, the act has offered health insurance to an estimated 10 million Americans who did not have any, often by expanding Medicaid or providing subsidies…Such policies desperately need improvement, patients and professionals like Mr. Rukavina say. But with the Republicans attacking the Affordable Care Act at all turns, even political supporters seem reluctant to acknowledge that it has some flaws. The narrative has been cast in black or white: It’s working, or it’s a failure. The reality, of course, is gray.”

      Fair enough. I would harken back to what every poll says…don’t repeal it, fix it. Its clear your article thinks good things have come out of it so far.

      1. Healthcare is not a fucking right. Read the constitution. Is ‘affordable healthcare’ mentioned? No, I didn’t think so. So wish we could make this crap system disappear and start all over. I’d be happy to do your anesthesia for a few chickens.

  23. I don’t need insurance because where I live, there is free-enterprise competitive medical and dentistry and lab-testing etc. Clinics with real doctors cost as little as $2, office visits, about $15 and up. Most medicines need NO prescriptions.
    I had a double cataract operation including 2 hospital stays, all tests, all medicines and it cost me $1400. NOT a govt. hospital, a CAPITALIST functioning hospital. It is called freedom (from govt).

    I am from New Orleans, but live in MEXICO (since 1988)

  24. This is gonna be great.

    “Those who signed up for health insurance on the open marketplace through the Affordable Care Act by the May 1 deadline will expect to file more forms.

    Their insurance provider will send a 1095-A form, which will be needed when filing online or with an accountant. People can begin filing taxes Jan. 20, but people may not receive their 1095-A forms until the end of the month.”

    Those who have had insurance through an employer, Medicare or Medicaid, simply need to check a box that says they have insurance this year.
    Next year, covered individuals will have to provide more proof when filing. Employers will have to provide proof next year as well.”

  25. “Part of the administration’s legal strategy is to emphasize the disruption that would be caused by the Supreme Court ruling that federal exchange subsidies are not authorized by the law.”

    And WaPo ran a front page sob story today about some single mom in Austin who will face “devastating” something something if she loses her subsidies. We’re just a few weeks away from a series of op-eds and CNN/MSNBC “specials” on how these subsidies are essentially natural rights and why isn’t there a constitutional amendment recognizing this already?

    Since I love in Austin all I want to do is find this woman and taunt her. No soup for you!

    1. My day started reading that crappy article. Needless to say it got off on a very bad foot.

  26. My mother is an accountant. Usually two weeks into January she starts setting everything up and is processing returns. This year everyone is still trying to figure out what is going on, the IRS is continually issuing updates to the rules and virtually no one is getting their taxes done. Of the few she has done, several wound up owing thousands of dollars because of the way subsidies are calulated.

    1. *calculated

  27. You forgot to mention all the bullshit stories about ordinary people who have so benefited from Obamacare (minus the objective analysis).

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