 Supporters of a state-based exchange say that they want to set up an exchange
before the end of the year to ensure access to federal subsidies. Adding to the
uncertainty of federal subsidies for health insurance is the U.S. Supreme Court
agreeing to take up a case challenging the subsidies for states that do not have
a state based exchange.
Illinois currently has a partnered exchange. Critics say a state-run exchange
would be pricey with estimates into the tens of millions of dollars a year.
Representative Robyn Gabel said she plans on bringing amendments to the bill
when it hits the house floor, which could be this week or during a possible
session in January. If passed the exchange would be ready for open enrollment by
fall next year.
If Illinois moves forward with a state-based health insurance exchange for the
Affordable Care Act, it could cost more than $170 million in just three years.
During a house hearing on a measure to create a state-based exchange Sarah
Myerscough-Mueller with Governor Quinn’s office says the costs will be tens of
millions of dollars a year.
“The first year it would be around $72.5 million and then year two would be $50
million,” she said. “So how they broke that out, it would be roughly $50 million
thereafter due to updates for IT, obviously consumer assistance stuff would
exist but would be pared down over the years.”
Myerscough-Mueller says as the years go on there wouldn’t be a need for a high
number of navigators. Funding for the tens of million dollars a year would come
from a three-point-five percent assessment on policies. A measure creating a
state-based exchanged passed committee and could be amended before a full vote
on the house floor.
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A state-run health insurance exchange could cost Illinois upwards
$170,000 in the first three years, if it passes the legislature. The
measure that passed a house committee Monday allows for a 3.5
percent assessment on insurance plans to pay for the exchange.
During a house hearing Monday State Representative Norine Hammond
asked Representative Robyn Gabel if the three-point-five percent of
health insurance costs to pay for the program could rise with the
federal rate. Gabel said the law would cap that, but there are ways
around expected increased costs.
“So, and there may be some advocates that aren’t thrilled about
this, but a big section of the money would go to marketing, so there
would just be a little less marketing,” Gabel said.
Gabel says if the cap of 3.5 percent doesn’t generate enough money
to run the state-based exchange lawmakers could come back with a new
bill to raise more revenue. The proposed exchange passed a house
committee Monday and could be amended further on the house floor in
the remaining session of the General Assembly.
[This
article courtesy of
Watchdog.]
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