Many states have conceded their rights to operate their own health insurance exchanges, leaving the accountability for setting up and maintaining the exchanges in the Fed Government's hands. By the deadline of December 14, 2012, only fourteen states had submitted their plans to operate state run health insurance exchanges, with another 3 announcing that they desired to join the ranks of state run operations. These means a majority will now have federally run healthcare insurance individual exchanges, and many residents are worried.
The ones that fear the federal run exchanges accept that this is just too much responsibility added to an already strained government. Having them attempt to implement health insurance individual programs, create a passable mean for individuals to research and get coverage, and keep the whole program practicable is a job not intended for the feeble hearted, or the time constricted. States are being granted millions to be advocates for their residents, and guarantee purchaser friendly access to health insurance individual coverage. Advocates for state run exchanges believe that health insurance individual options will be best served on a local level.
For the states that did not consent to run their own exchanges, Fed funds were not quite enough to outweigh the potential backlash. Individual health insurance is currently different in each state. Plans, underwriting, and so on. Are all locally engineered to the requirements of their residents. By lumping together all those short of individual health to just a few "categories", the premiums will have to be increased.
Local carriers will face some stiff competition, and may not be able to keep up pace. Additionally , companies who use Fed. exchanges will be exempt from lots of the fees and penalties imposed by state run exchanges. Overall, opponents are hoping that when the system falls on its face they will not be linked to the fiasco that is health care reform.
Deep concerns also exist when it comes down to the funds needed to line up Fed. exchanges. Will Washington leaders dig deep into their own pockets? Or will the brunt fall on the taxpayers? It won't be inexpensive to operate a health insurance exchange, so the money will need to come from somewhere. Individual health insurance is at stake, and should not be treated trivially. If people look towards the reform system to fail, at what cost will this be? Whether your exchange is federally or state run, the system needs to be there when you need it. If not, it has to go back to the drawing board until a sustainable system is formed.
The ones that fear the federal run exchanges accept that this is just too much responsibility added to an already strained government. Having them attempt to implement health insurance individual programs, create a passable mean for individuals to research and get coverage, and keep the whole program practicable is a job not intended for the feeble hearted, or the time constricted. States are being granted millions to be advocates for their residents, and guarantee purchaser friendly access to health insurance individual coverage. Advocates for state run exchanges believe that health insurance individual options will be best served on a local level.
For the states that did not consent to run their own exchanges, Fed funds were not quite enough to outweigh the potential backlash. Individual health insurance is currently different in each state. Plans, underwriting, and so on. Are all locally engineered to the requirements of their residents. By lumping together all those short of individual health to just a few "categories", the premiums will have to be increased.
Local carriers will face some stiff competition, and may not be able to keep up pace. Additionally , companies who use Fed. exchanges will be exempt from lots of the fees and penalties imposed by state run exchanges. Overall, opponents are hoping that when the system falls on its face they will not be linked to the fiasco that is health care reform.
Deep concerns also exist when it comes down to the funds needed to line up Fed. exchanges. Will Washington leaders dig deep into their own pockets? Or will the brunt fall on the taxpayers? It won't be inexpensive to operate a health insurance exchange, so the money will need to come from somewhere. Individual health insurance is at stake, and should not be treated trivially. If people look towards the reform system to fail, at what cost will this be? Whether your exchange is federally or state run, the system needs to be there when you need it. If not, it has to go back to the drawing board until a sustainable system is formed.
About the Author:
Daniel Abrams, President of Insuresaver Insurance Agency is a health insurance
exchange expert and individual health insurance consultant
exchange expert and individual health insurance consultant
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