FederalGovernment Will Oversee Health Insurance For Individuals
Many states have conceded their claims to operate their own health insurance exchanges, leaving the accountability for setting up and keeping up the exchanges in the Fed. Government’s hands. By the cut-off point of December 14, 2012, only 14 states had submitted their plans to operate state run health insurance exchanges, with another 3 announcing that they desired to join the ranks of state run operations. These means a majority will now have federally run healthcare insurance individual exchanges, and many residents are worried.
Those that fear the Fed. run exchanges accept that this is simply too much responsibility added to an already strained govt.. Having them try to implement health insurance individual programs, make a passable mean for individuals to analyze and get coverage, and keep the entire program practicable is a job not intended for the feeble hearted, or the time constricted. States are being granted millions to be advocates for their citizens, and ensure shopper friendly access to health insurance individual coverage. Advocates for state run exchanges believe that health insurance individual options will be best served on a local level.
For the states that didn’t agree to run their own exchanges, federal funds were not enough to outweigh the potential backlash. Individual health insurance is presently different in each state. Plans, underwriting, and so on. Are all locally designed to the needs of their residents. By lumping together all those short of individual health to only a few “categories”, the premiums will have to be increased.
Local carriers will be facing some cutthroat competition, and may struggle to keep up pace. Also , companies who use federal exchanges will be free from lots of the fees and penalties imposed by state run exchanges. Overall, opponents are hoping that when the system falls on its face they will not be linked to the fiasco that is medical care reform.
Deep concerns also exist when it comes to the funds needed to line up federal exchanges. Will Washington leaders dig deep down into their own pockets? Or will the brunt fall on the taxpayers? It won’t be cheap to operate a health insurance exchange, so the money will have to come from somewhere. Individual health insurance is at risk, and shouldn’t be taken lightly. If folks look towards the reform system to fail, at what cost will this be? Whether your exchange is federally or state run, the system needs to be there when you need it. If not, it has to return to the drawing board till a sustainable system is formed.
Daniel Abrams, President of Insuresaver Insurance Agency is a health insurance exchange expert and individual health insurance specialist