Coalition: Legislature must act to set up health insurance exchange
Coalition: Legislature must act to set up health insurance exchange
By Joe Gardyasz
Iowa needs to ensure it’s positioned to launch a state-run health insurance exchange by 2014, or the state may have to swallow an even more bitter pill with a federally run exchange, say leaders of the Iowa Exchange Alliance.
Representatives from the ad-hoc alliance of business organizations met last week with the Business Record to outline their campaign for the Iowa Legislature to enact a bill during the 2012 session authorizing the formation of a state-run exchange.
The coalition includes the Iowa Health Underwriters Association, the Independent Insurance Agents of Iowa, the Iowa Retail Federation and the Iowa chapter of the National Association of Insurance and Financial Advisors (NAIFA).
Under the federal health reform law enacted in March 2010, states must submit a plan to the U.S. Department of Health and Human Services by Jan. 1, 2013, for an exchange that will begin operating by Jan. 1, 2014.
Those states that don’t establish their own exchanges will default to federal regulations over how the exchange is operated, which “wouldn’t be in the best interests of Iowa,” said Jesse Patton, president of Associations Marketing Group Inc. and a past president of the Iowa Health Underwriters Association.
“The concern is, set up incorrectly, all the exchange is going to do is add another layer of cost, and our biggest problem in the system is cost,” Patton said. “That’s why we think (the state) needs to have more control over the structure of the exchange and how it’s set up on a local basis so that doesn’t happen.”
The alliance lobbied unsuccessfully for a bill during the 2011 legislative session to create a state exchange; now the clock is really ticking to get it done, said Scott Weiser, president of lobbying firm Capitol Strategies Group Inc.
“We have met with all the major leaders throughout the fall regarding our bill,” said Weiser, who represents the National Association of Insurance and Financial Advisors. “I think there’s really great acceptance that we need to have an Iowa exchange; it’s just getting folks to act with the uncertainties that are out there.”
Among those uncertainties are how the U.S. Supreme Court will rule after it reviews the constitutionality of the federal health insurance mandate in March, and whether a Republican administration will follow through on campaign pledges to dismantle “Obamacare.”
From a small-business perspective, enacting legislation for a state exchange would reduce uncertainty, said Jim Henter, president of the Iowa Retail Federation. “Having some flexibility would certainly be preferred,” he said. “Rolling the dice on what the Supreme Court decides doesn’t make sense. We want to have some control of our own destiny.”
Under health reform provisions, employees of small businesses would be able to shop for coverage through the exchanges, using health-care benefit dollars allocated to them by their companies.
“So in essence, that small employer, like a large employer, could offer multiple plans and multiple benefits and let the employee pick the program,” Patton said.
Iowa needs to ensure it’s positioned to launch a state-run health insurance exchange by 2014, or the state may have to swallow an even more bitter pill with a federally run exchange, say leaders of the Iowa Exchange Alliance.
Representatives from the ad-hoc alliance of business organizations met last week with the Business Record to outline their campaign for the Iowa Legislature to enact a bill during the 2012 session authorizing the formation of a state-run exchange.
The coalition includes the Iowa Health Underwriters Association, the Independent Insurance Agents of Iowa, the Iowa Retail Federation and the Iowa chapter of the National Association of Insurance and Financial Advisors (NAIFA).
Under the federal health reform law enacted in March 2010, states must submit a plan to the U.S. Department of Health and Human Services by Jan. 1, 2013, for an exchange that will begin operating by Jan. 1, 2014.
Those states that don’t establish their own exchanges will default to federal regulations over how the exchange is operated, which “wouldn’t be in the best interests of Iowa,” said Jesse Patton, president of Associations Marketing Group Inc. and a past president of the Iowa Health Underwriters Association.
“The concern is, set up incorrectly, all the exchange is going to do is add another layer of cost, and our biggest problem in the system is cost,” Patton said. “That’s why we think (the state) needs to have more control over the structure of the exchange and how it’s set up on a local basis so that doesn’t happen.”
The alliance lobbied unsuccessfully for a bill during the 2011 legislative session to create a state exchange; now the clock is really ticking to get it done, said Scott Weiser, president of lobbying firm Capitol Strategies Group Inc.
“We have met with all the major leaders throughout the fall regarding our bill,” said Weiser, who represents the National Association of Insurance and Financial Advisors. “I think there’s really great acceptance that we need to have an Iowa exchange; it’s just getting folks to act with the uncertainties that are out there.”
Among those uncertainties are how the U.S. Supreme Court will rule after it reviews the constitutionality of the federal health insurance mandate in March, and whether a Republican administration will follow through on campaign pledges to dismantle “Obamacare.”
From a small-business perspective, enacting legislation for a state exchange would reduce uncertainty, said Jim Henter, president of the Iowa Retail Federation. “Having some flexibility would certainly be preferred,” he said. “Rolling the dice on what the Supreme Court decides doesn’t make sense. We want to have some control of our own destiny.”
Under health reform provisions, employees of small businesses would be able to shop for coverage through the exchanges, using health-care benefit dollars allocated to them by their companies.
“So in essence, that small employer, like a large employer, could offer multiple plans and multiple benefits and let the employee pick the program,” Patton said.
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