States Might Need a Push to Take Proper Control of Health Exchanges

As October 2013 approaches, the more sensible of states are getting their act together and are in the process of collaborating with insurance software vendors to provide them the kind of healthcare software systems that can create and sustain a healthcare exchange. The HHS has allowed the unprepared states to default to the federal exchange format and even given them the liberty of taking ownership for creating a state exchange in the later years. This is the reason why some of the states are seeking FFE or the Federally Facilitated Exchanges, hoping to set up their state exchanges in the near future.
Many of the health insurance industry resources have said that they would be lobbying in the states that have sought the federal route, asking them to graduate to the state exchange platform. The exchanges are expected to cater to nearly half of the nation’s health insurance consumer-base by 2020. Some of the states have chosen a hybrid or partnership approach that is essentially a state-federal exchange, where the partnership helps to distribute the responsibilities of managing the exchange between the state and federal governments.
There is a misconception that states which have been at the center of the regulations that govern the insurance industry will find it easier to manage the new marketplace. It is being forgotten that health care reforms are applicable to the nation, and not just a few states. Some regulatory challenges might be downsized for the more influential states but the equation largely remains the same in the overall picture. The basic ideology of providing affordable health coverage and offering federal tax subsidies remains applicable to all the state-run exchanges.
Some of the biggest trade organizations in the American health insurance industry like the America's Health Insurance Plans also support the vote for creating state exchanges rather than defaulting to the federal-controlled format. Most authorities believe that states across the nation have or can steadily develop the infrastructure and the experience that is required to manage state-run health exchange markets.
There should be no apprehensions regarding the creation of exchanges since the number of medical insurance software solution options are increasing by the day. This means that states are finding an open market from software vendors to create a marketplace that can be compatible with the reforms and serve the consumers.
State officials shouldn’t be worried whether the HHS rules will become outdated soon. Most of them are applicable until 2014 and 2015 and more guidance and provisions will be issues to ensure that states face the minimal problem when managing exchanges. For states that have chosen the partnership program with federal government, there shouldn’t be apprehensions about the transition to totally state-managed exchanges by 2016 since by that time, state authorities would have gained critical experience in managing the exchanges. This is why, recently, many of the states have steadily moved from the partnership format to the state exchange format.
Nearly 18 states apart from the District of Columbia have already been approved for state-based marketplace and more states are expected to join this count. The exact status will emerge around February 15, when applications are due to be submitted to the HHS. The defaulting states will be automatically choosing the federal-run exchange.