State Exchanges Teetering Financially

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State Exchanges Teetering Financially
Calendar20 May 2015

According to this report in The Washington Post, almost half of the 17 state-based health insurance marketplaces are struggling financially. For many, the financial pressure is attributed to high technology and call center costs and disappointing enrollment numbers. During the recent open enrollment period, state enrollments rose only 12% while the federal exchange enrollment increased 61%. States with the greatest financial problems are among those with the lowest enrollment numbers. States are weighing many options, including increased fees on insurers, partnering with other state exchanges, and the federal exchange. But until the US Supreme Court decides if premium subsidies are limited to state-run exchanges in King vs. Burwell, partnering with the federal exchange is a risky proposition.

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