As the future of President Obama’s health care reform initiative and its ambitious timetable grow more uncertain, you may be interested in learning how some states are taking matters into their own hands with practical solutions that can be quickly implemented – rather than waiting around for a federal plan.
The State of Utah passed legislation in late 2008 that mandated the creation of a health insurance “marketplace” or “exchange” that connects consumers to a Website where they can evaluate insurance options and make informed purchasing decisions. The first phase of the Utah Health Exchange, a “defined contribution” model for small employers (2 to 50 employees), is now underway and will be launched in November, 2009.
In the first phase of the Exchange’s implementation, the plan will create the “defined contribution” model for small employers (2 to 50 employees). In this model, employers define a specific dollar amount to contribute to their employees’ health insurance premiums and then employees can “shop” at the Exchange from a menu of plans offered by participating insurers. This model enhances private competition and transparency in the health care system by giving employees the necessary information and purchasing power to make informed health insurance choices. It also offers relief to employers who will no longer bear the full burden of administering a health plan for their employees.
The technology behind the Utah plan is suited to the Exchange’s model because it can present consumers with side-by-side comparisons of plan options and costs with “drill down” details and links to forms and documents all in one location and at the “point of purchase.” It can also handle the numerous administrative complexities raised by this approach, including the transmission of electronic feeds to multiple carriers and the funding of health insurance premiums from multiple sources such as the government or a spouse’s employer.
Interesting times...
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