Insurance exchange designs criticized
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A health advocacy group is questioning Pennsylvania's early designs for its public health insurance exchange, the statewide insurance policy clearinghouse mandated as part of the federal government's 2010 health care overhaul.
States are supposed to have the online exchanges -- where multiple insurance carriers provide a variety of policies and consumers can compare the products -- up and running by 2014. In November, Republican Gov. Tom Corbett announced his "commitment" to building a state-run insurance exchange rather than let the federal government operate Pennsylvania's exchange, despite his opposition to the personal-mandate provision of the health care law.
But in a conference call Friday morning, the Pennsylvania Health Access Network said one of Pennsylvania's rough drafts of the legislation governing the exchange, which was circulated this week during a series of meetings, allows for the existence of multiple exchanges operated by private companies.
The exchanges would have to be certified by the state Insurance Department and would operate under the new Office of the Commonwealth Health Insurance Marketplace, according to the draft legislation.
"The best-case scenario would be [one] state-based exchange," said Antoinette Kraus, project director of Pennsylvania Health Access Network. A single portal, she said, would make it easier for consumers to compare, contrast and ultimately buy the right policy. Certifying multiple private companies to operate the exchange, or exchanges, would "line the pockets of big business," Ms. Kraus said.
Pennsylvania has been studying the creation of the exchange with consultants, and last year the state and KPMG LLP issued the preliminary results of those studies. One reason for looking to the private sector, according to the state, is because of the state's technology "gaps."
First Published February 4, 2012 12:00 am
