The Role of States in Health Insurance Exchanges
The Role of States in Health Insurance Exchanges
Florida was the first state. Others followed. And now almost every state has filed a lawsuit against the federal health reforms. While the law is still being debated in the courts, the federal government has made it clear that it is the state that will be in complete control of the insurance reforms in general and the Exchanges in particular.
In a statement, US Secretary of Health and Human Services, Kathleen Sebelius has said, "The Affordable Care Act puts states in the driver's seat because they often understand their health needs better than anyone else and that is why it is so frustrating to hear opponents of reform falsely attack the law as nationalized health care'. The truth is that states aren't just participating in implementation of the law; they're leading it."
It is through these state based Exchanges that a majority of the residents and small firms of the state will purchase their medical policies. The health insurance Exchange will enable the residents to pool their purchasing power to negotiate lower rates with the insurance companies. Having a larger part of the population on the state based platform will boost the state's authority in bringing in more regulations to the health insurance sector.
The states will also have the flexibility to choose the type of Exchange they wish to build for their residents. The Act only gives a broad outline, the details of the platform has been left to the states to decide. They could either design and run their own Exchange or they could ask the federal government to step in and build it for them. In either case, the states will be eligible for federal funds till 2015, beyond which they have to discover their own sources of revenue. The states also have the authority to pick the medium of the Exchange, i.e. to go online or otherwise, depending on the population of the state. Most states are however expected to have online health insurance marketplaces.
The states have the choice to select the type and number of insurers who participate in the Exchange, the type of health plans that will be exhibited, the guidelines that insurance companies have to meet before they can take part in the Exchange and all such other norms. The states also have the freedom to decide the types of benefit plans that the Exchange will offer. They can choose to require basic protections, based on the typical benefits people get through their jobs, or set higher standards.
The states will also have the autonomy to decide how they choose to keep the premiums down, regulate the marketplace and in general, make insurance a much easier experience for the residents. And last, but one of the more prominent roles of the state is the administration of the Exchange. The state could choose to govern the Exchange on its own or appoint a non-profit entity to act on its behalf. Whatever the scenario may be, the control of the Exchange will lie in the hands of the state.
The health insurance Exchange is a byproduct of the federal health reforms, but the onus of effectively implementing these regulated market place lies with the states. Real time Health Insurance leads Doctors and other healers of Egyptian How a Doctor's Empathy Can Make You Heal Menopause Supplements to Alleviate Your Menopause Issues Skin and African American Skin Types Can Glow in Best Stethoscope For Doctors Health Insurance For Senior Citizens - Why Are They Thus Exhausting To Insure? The Norms Of Health Insurance For Pre Existing Conditions How to Compare Ohio Health Insurance Group Health Insurance Alert : Immediate Action Required By Employers Health Insurance Reform Issues Student Health Insurance The Purpose Of Health Insurance Companies The Best Malware Removal for Doctores