Many states turn their backs on health insurance exchanges

Posted on: Thursday, December 27, 2012

The December 14 deadline for submitting proposals to the government about setting up state-run health exchanges has come and gone, and many states have said they will not participate in these exchanges.

Data compiled by the Henry J. Kaiser Family Foundation found that 25 states have opted out of the state-run exchange program and will, by default, rely on the federal government to provide coverage to the uninsured. Another seven states said they will operate exchanges as part of a federal-state partnership that will equally divide the administrative burden of providing care and overseeing insurance sales.

By the Kaiser Foundation's count, 18 states and the District of Columbia have agreed to run their own exchanges, free from federal interference.

"We're looking forward to Jan. 1, 2014, when consumers and small businesses will be enrolled through the exchanges in private health insurance plans and millions more Americans will have the coverage they need and deserve," said U.S. Health and Human Services Secretary Kathleen Sebelius.

The Patient Protection and Affordable Care Act is expected to help roughly 30 million Americans obtain affordable health insurance.

Posted In: Insurance News, Health Insurance

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