Health Insurance Exchanges And The Federal Government
Posted Aug 08 2012 1:09pm
Stanley Feld M.D., FACP,MACE
Health Insurance Exchanges are supposed to be state-regulated and standardized health care plans in the United States , from which individuals may purchase health insurance eligible for federal subsidies.
All exchanges must be fully certified and operational by January 1, 2014 under federal law .
“So far, Governors of 13 states with nearly one-third of the United States population have sent letters to the Obama administration saying they intend to set up exchanges. Complete applications are due on Nov. 16, 2013.”
Stated another way, 37 states have not signed up yet. Once those 13 states that have signed up calculate the cost to setting up and running the health insurance exchanges I suspect they will withdraw.
The Secretary of Health and Human Services, Kathleen Sibelius’,plan was to create regulations for the states to develop the health insurance exchanges by January 1,2014. She has emphasized that states must meet her standards of transparency and accountability.
The federal government requires state exchanges to develop budgets and project operating costs, revenues and expenditures.
There are a great many regulations attached to qualify as a state exchange.
States must explain how the revenue will be generated and how the exchange will address any financial deficits.
The federal government wants to set up the rules that require the states to execute these rules at the states expense after the federal government funds the exchange for two years.
The health exchange program will be delayed because the government pledged to set up the health exchanges in the states that opted out of the program.
Creation of Health Insurance Exchanges is a complex and expensive task. States have to operate under a balanced budget. States cannot afford this undertaking.
Kathleen Sibelius has demanded total transparency of state health insurance exchanges yet planning for the federal exchanges has been done almost entirely behind closed doors.
“We have gotten little bits of information here and there about how the federal exchange might operate,” said Linda J. Sheppard, a senior official at the Kansas Insurance Department.
“I was on a panel at Rockhurst University here, and I was asked, ‘Where is the Web site for the federal exchange?’ I chuckled. There really isn’t any federal exchange Web site.”
In New Hampshire, Thomas M. Harte, the president of Landmark Benefits, which arranges health insurance for 300 employers of all sizes, said:
“Nobody has any idea what the federal exchange will look like. There has not been much communication between officials drafting plans for the federal exchange and the people who will use it: consumers, employers, brokers and insurers.”
Administration officials have not set forth a budget for the federal exchanges.
“They said they intended to charge “user fees” to the participating health insurance plans.
It is unclear whether the fees are subject to approval by Congress or whether insurers could pass the costs on to consumers.”
I get it.
The Federal Government is not telling us what they are going to do because they probably want to follow its non-transparent regulations.
It is pretty clear this will be one of many steps toward the destruction of the healthcare system. The healthcare system will self implode. At that point everyone will be begging the government to take over.
It will be impossible for President Obama to take over a business system it cannot afford.
A key to Repairing the Healthcare System is to decrease the outsourcing and bureaucratic complexity.
The opinions expressed in the blog “Repairing The Healthcare System” are, mine and mine alone