D.C. Considers Exchange Mandate for Small Business Health Plans

The Washington, D.C., City Council is considering a bill that would require all small business health insurance plans to be sold and purchased via the district’s online health insurance exchange, a defensive move against the district’s largest health plan that is accused of “gaming the system,” according to a report by the Washington Post.

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CareFirst BlueCross BlueShield controls 67 percent of the district’s individual health insurance market and 75 percent of its small business market. It agreed to sell plans through the district’s exchange, but it announced its subsidiary companies would offer fewer options to small businesses through the exchange than officials expected and offer others only outside the exchange.

That has officials worried that small businesses will forego the exchange and its subsidies and tax credits to obtain their desired plans with the dominant health insurer, undermining the customer volumes needed to capitalize on the exchange’s competitive pricing potential, according to the report.

More Articles on Health Insurance Exchanges:

California Health Plans to Refund Millions in Premium Rebates
Study: Expanding Medicaid Reduces Long-Term Costs to States
Accenture: Private Health Exchanges Will Sell 1 in 4 Work Health Plans by 2018

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