The authors of the report reviewed legislation and conducted interviews in March and April 2013 in Colorado, Maryland, New York, Oregon, Rhode Island, and Virginia about the state’s efforts to develop exchanges. Specifically, the researchers assessed whether or not each states rules and regulations would promote or inhibit competition among insurers.
They found that the states were accommodating insurance companies and letting the market determine premium rates.
States expected that most commercial insurers and some Medicaid-only insurers would participate in the insurance exchange markets. It was unclear how competitive consumer operated and oriented plans might be and how multi-state insurance plans might factor into the insurance exchange markets.
There was also uncertainty about how new premiums would be set because of the new requirements for insurers, lack of information about the composition of health-plan enrollees and lack of information about what risks and risk adjustments in the new market will be.
Despite this, the report found that that the incentive for insurers to have the second-lowest cost plan in the market seemed to ensure that state insurance exchange markets will have strong competition and will offer reasonably priced premiums, lower premiums for unsubsidized enrollees and lower subsidy costs to the federal government.
More Articles on Finance:
AHA, Blue Cross and Blue Shield Oppose ICD-10 Delay
Preparing for ICD-10 Requires Leadership, Communication of Benefits
Smart Moves: How Hospitals Manage Risk When Borrowing
Becker’s 3rd Annual Fall Chief Pharmacy Officer Summit is the top tier event that the people leading the future of pharmacy convene. This 3-day event is built specifically for Chief Pharmacy Officers and senior pharmacy leaders. The sessions examine the workforce, financial and clinical priorities shaping pharmacy today. Becker’s is where candid discussions flourish and new ideas thrive. Becker's 3rd Annual Fall Chief Pharmacy Officer Summit
