States Seek Alternative Exchange Funding Before Federal Aid Expires
There is concern among state officials, particularly in the 14 states and the District of Columbia that run their own health insurance exchanges, about how to fund those exchanges once federal funding ends in 2015, Modern Healthcare reports.
According to Modern Healthcare, states have received at least $4.7 billion to build and operate the exchanges so far.
Various states have proposed solutions to handle the cost of running an exchange going forward. For example:
- California has authorized a $13.95 monthly assessment on plans purchased through its exchange;
- In Colorado and Minnesota, officials have approved taxes of at least 3% on 2015 premiums for exchange plans; and
- The Washington, D.C., city council earlier this month unanimously passed a tax of as high as 1% on premiums for coverage purchased by D.C. residents, even if the plans are not purchased through the district's insurance exchange (Demko, Modern Healthcare, 5/16).