Deltek Analyst Amanda White reports.
Without a doubt, a majority of states have been dragging their feet when it comes to passing legislation for establishing a health insurance exchange – 36 states, to be exact. It is shocking that – despite the 2014 deadline being a mere two years away – only 14 states have passed legislation to set up an exchange, while 10 have yet to introduce any.
Though Massachusetts and Utah are still the only states that have operational insurance exchanges at this time, a bulk of states are immersed in planning efforts. For a few states including Arkansas, Florida and Louisiana, the Supreme Court’s ruling on the constitutionality of President Obama’s Affordable Care Act has provided enough justification to cease any planning efforts for an exchange. However, a majority of states are executing a wiser approach, which is why vendors should put their worries to rest. The reality is that these insurance exchange opportunities are not going anywhere.
Next spring, the Supreme Court will consider the following:
- Whether Congress has the power to require individuals to purchase health insurance.
- Whether Congress can coerce states to expand Medicaid by threatening to withhold funding from resistant states.
- Whether the individual mandate is severable from the rest of the overhaul and if its invalidation means getting rid of the law as a whole.
- Whether legal arguments brought against the health reform law are premature since the mandate will not be implemented until 2014.
Regardless of the Supreme Court’s ruling, there will still need to be a solution to the health insurance coverage issue. The insurance exchange mandate was created in response to the overwhelming number of individuals without health care. The idea is that these marketplaces will allow individuals to compare and obtain affordable health insurance options. For that, even if the rule is overturned, states will still need to respond to the matter in some way. Though it is up to the feds to make sure health coverage is more accessible and affordable, the more challenging component of delivering the benefits is up to the states.
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