Recently, I attended the regional Health and Human Services listening session on Health Insurance Exchanges. I came away with three major pieces of information that reflect the current status of the Exchange portion of the Health Care Act. First, the Federal Government desires that the states develop and own their own exchanges. Currently the Fed is making dollars and incentives available to the states to encourage exchange creation. The problem is that only a few of the rules that will govern the exchanges have been promulgated.
Second, the Feds are expecting the states to be innovative in creating their plans and will seriously consider waivers to the Fed rules.
Third, it is clear that the deadlines imposed in the Act are not achievable and the Fed is encouraging the states to forge ahead. The problem is the Fed has not designed the national exchange that is supposed to fill in the holes left by the states exchanges. That process will take far more time than is allotted. While it may appear to the casual observer that New Mexico is not doing much on our own exchange, the fact is that numerous individuals and groups are working toward a solution for our state.
“So what is a Health Insurance Exchange?”, some of you may ask. The easiest explanation I can come up with is to use the NY Stock Exchange as an example. If you desire to purchase a stock in Company X, you consult with your broker or use you electronic opportunity and you buy the stock you want. If you move, change jobs or whatever, you still own your stock. In a Health Insurance Exchange you consult with your agent and buy an insurance plan that best suits your needs. The product is portable and it’s your’s and not connected to your job.