Private companies and states provide competition to state-run health insurance exchanges

Deltek Analyst Aila Altman reports.

Despite broad opposition to the federal health reform law by many states and lawmakers, many state and privately-run health insurance exchanges are popping up across the U.S. One of the most controversial cases is found in Florida. The state will soon launch Florida Health Choices, an exchange for small businesses (50 or fewer employees), and is meanwhile rejecting any form of federal grant funding for the implementation of a statewide exchange.

Nationwide vendors such as Wellpoint and Aon Hewitt are not twiddling their thumbs in anticipation of state-released solicitations for the exchanges, and are instead creating their own private exchanges. The core difference between these and the future statewide exchanges is the lack of subsidies. Once the statewide exchanges are launched in 2014, low- and middle-income Americans whose jobs do not provide health insurance will receive subsidies from the federal government to purchase insurance through the individuals’ state-run exchange. These subsidies cannot be used to purchase insurance for privately-run exchanges. Additionally, the health benefits provided through these private exchanges are not subject to federal requirements and therefore may provide lackluster coverage.

For the complete blog, go here.

Leave a Comment

Leave a comment

Leave a Reply