Friday, May 1, 2015

State Exchanges Struggle As They Await Supreme Court Decision

Because of balky IT technologies, expensive call centers, and slow enrollment, 17 state exchanges are struggling to survive as they wait late June Supreme Court ruling on legality of federal exchanges. The 17 exchanges (16 states and D.C) include Washington, Oregon, Idaho, California, Nevada, Minnesota, Kentucky, Colorado, New Mexico, Massachusetts, New York ,Maine, D.C., Rhode Island, Connecticut, and Vermont. The state exchanges were supported by $5 million from the federal government, but those funds are run out. Of the 11.6 million enrolled in all exchanges: 2.6 million came from state exchanges ( 12% growth) and 8.8 million were from federal exchanges (61% growth). If the court decides federal exchanges were illegal, and federal support is not forthcoming, the state exchanges will have a few options, including; one, continuing to support unsustainable state-run exchanges; and two, going out of business.

Source: “Nearly Half of ObamaCare Exchanges Struggle As Woes Grow,” Washington Post, May 1, 2015)

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