Health insurance exchanges set for turbulent future

Health Insurance premiums rise

Health insurance continues to be a hot topic in the US

Health insurance in the U.S. is a hot topic and more attention is being driven to the issue as exchange systems begin to take form in many states. These exchanges are meant to serve as online marketplaces where consumers can find affordable health insurance coverage. There has been a great deal of controversy concerning whether these exchanges will be able to accomplish this task or not, and executives of large health insurance companies are now warning that forming exchanges may be a very difficult task.

Insurance executives begin warning of future troubles with exchanges

Mark Moody, CEO of WEA Trust, notes that a great deal of uncertainty remains when it comes to the issue of health insurance exchanges. The federal government is working to build exchanges in several states while also offering support to states that have decided to build and operate their own exchange systems. Federal law is also pressuring states to expand their Medicare programs, which some states have considered to be unnecessary due to the formation of health insurance exchanges. Moody suggests that a great deal of chaos will follow the launch of health insurance exchanges, which may prove to be a source of stress of local government units as well as consumers.

Health InsuranceFederal exchanges could create confusion among consumers

In Wisconsin, where WEA Trust is based, Governor Scott Walker and state lawmakers have decided not to build a health insurance exchange. Instead, the federal government will be responsible for the exchange, meaning that state lawmakers will have very limited control over how the system operates. Because the exchange will be operated by the federal government, the regulations established therein may not synergize well with the Wisconsin health insurance market, which could create a great deal of confusion among consumers that have been exposed to the state’s regulations for several years. Wisconsin is only one of 32 states that have opted to allow the federal government to build an exchange.

Federal government may be slow to address any problems that come to light

The early days of these exchanges are expected to be turbulent. Open enrollment for these exchanges begins in October of this year, with coverage becoming active on January 1, 2014. Any problems that emerge in federally-run health insurance exchanges in the coming months may take significant time to resolve due to the fact that the federal government has limited resources and not enough time to address the myriad of issues that exchanges could bring to light.

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