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Multi-State plans likely to be initially offered on federally facilitated and partnership exchange marketplace in 2014

July 15th, 2013

Section 1334 of the Affordable Care Act creates a federally chartered (via the Office of Personnel Management) Multi-State health plan that must be offered in 60 percent of the state health benefit exchange marketplace in 2014. Section 1334 requires each state exchange to offer at least two Multi-State plans (one must be a nonprofit) in their individual and small business exchanges. The policy intent for the plans is to bolster competition in state markets, particularly those with smaller populations and fewer payers.

Conveniently, the 60 percent figure overlaps nicely with the percentage of state exchanges the federal Department of Health and Human Services will operate either directly or in partnership with a state in 2014. Expect to see most if not close to all Multi-State plans rolled out next year to be in these federally administered exchange marketplaces. The federal state exchange marketplace would also be a more logical choice than state-based exchanges since Multi-State plans will be more easily able to integrate with the federal web portal than various web portal architectures developed by state-based exchanges. On May 30, the White House announced OPM is reviewing more than 200 proposed Multi-State plan options.

 


Need a speaker or webinar presenter on the Affordable Care Act and the outlook for health care reform? Contact Pilot Healthcare Strategies Principal Fred Pilot by email fpilot@pilothealthstrategies.com or call 530-295-1473. 

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