How State Exchanges Are Playing Out — Real Health Care Reform Healthshare

How State Exchanges Are Playing Out

state health insurance exchangeThe all-too-quickly-approaching deadline is approaching for state officials to declare whether they’ll run an exchange for their state of let the feds do it.


This deadline has actually come and gone, but Health and Human Services announced a new deadline to give officials more time to decide. By February 2013, all states must declare whether they plan to create their own exchange or let the federal government do it for them.


Whether the state or the federal government end up hosting the exchange for your state, time is running out to get the works in place. You’re supposed to be able to check out a new exchange in less than a year. The coverage you select is supposed to be in effect by January 2014. And it looks like many states, and the Federal government, will have a hard time being ready by these deadlines.


The new exchanges are envisioned as online marketplaces where small business owners and individuals can shop for affordable and quality health insurance products. We’ll continue to monitor the coming changes and look for insights that can help you navigate the new ways health insurance and health care may become available.


Some changes are already apparent. Florida Republican Gov. Scott, for example, has said he wants to negotiate with federal officials to try to help nearly four million uninsured Florida residents. Scott was one of the strongest opponents to the health care reform law.


In Iowa, Governor Branstad said that he is delaying a decision about running the state exchange, but his spokesman said the Governor is considering a partnership with other states in order to run an Iowa exchange. Florida and Ohio officials may take the same path.


Mississippi Republican insurance commissioner Chaney has already notified the Obama administration that his state will proceed with a state-run exchange. Republican Governor Martinez of New Mexico has also agreed to run an exchange.


There are a number of potential benefits available to state governments that build their own health-insurance exchange. One of the biggest is that this would help keep state officials involved when it comes to coordinating Medicaid. And, many people may be moving between Medicaid and state-exchange private coverage.


The states that stay “in the loop” will have choices to make, like whether to allow all insurance companies to participate in the exchange. They can opt to only allow in companies that agree to meet their criteria.


Other state officials in places like Kansas, Louisiana, Missouri, South Carolina and Texas seem unlikely to participate in the state exchanges. That leaves it up to the federal government to take responsibility. The previously Republican-led state of Virginia has also left running its exchange to the federal government.


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