State’s Health Insurance Exchanges were implemented as part of the Affordable Care Act in hopes of helping to drive insurance premiums down through healthy competition amongst insurance carriers, as well as giving carriers an easy way to comply with consumer protections. However, it looks like insurers are hesitant to enter their products into the exchange for fear that more people with pre-existing conditions will sign up through the exchange than healthier individuals. They are also concerned about the coverage restrictions eating into their profits.
It also looks like some insurance companies are only going to enter exchanges of their home state for the first year and wait to see how it all pans out before branching out into other states. Officials for the state of Illinois are concerned because the numbers of plans being offered in their state exchange is significantly lower than their estimations.
What does this mean to consumers? It could mean higher premiums for plans in the exchange than hoped, as plans in the exchange would be forced to raise their premiums to help offset the costs if more participation doesn’t happen. Many healthy individuals would be hesitant to purchase through the exchange, preferring to stay with plans outside the exchange or remain uninsured all together.
Only time will tell. This was experts concern with this reform package because everything hinges on individuals heeding the mandate and a broad participation of health plans offered in state’s exchanges.
For more information about your state’s status: http://www.statehealthfacts.org/comparemaptable.jsp?ind=962&cat=17
