Auto Insurance Quotes ~ Wisconsin out front on health insurance exchanges : WASHINGTON — Wisconsin is at the forefront of an effort to build the information technology system for state health insurance marketplaces, despite Gov. Scott Walker's rejection of the federal health care law.
The Department of Health and Human Services last month awarded Wisconsin $37.7 million for the project. The Badger State was among seven grantees — the others were Kansas, Maryland, New York, Oklahoma, Oregon and a consortium of New England states — selected to receive a chunk of $241 million in "early innovator" grants.
Officials from those states are in Washington for a briefing on the project. The states are required to develop models that can be used in other states.
"Early innovator states will play a critical role in developing a consumer-friendly marketplace where insurers must compete to deliver the best deal," said HHS Secretary Kathleen Sebelius when announcing the grants on Feb. 16. Sebelius said the grants will lay the groundwork to "ensure consumers in every state will be able to easily navigate their way through health insurance options."
Under the health care law President Barack Obama signed last March, states must establish health insurance exchanges by 2014. The exchanges will allow consumers and small businesses to shop for and enroll in private health care plans that suit their needs.
While states must begin operating the exchanges in 2014, they have to declare their intent to form them by Jan. 1, 2013. The federal government will step in to run the exchanges in states that fail to comply. Wisconsin Department of Health Secretary Dennis Smith said the state is well on its way to fulfilling its commitment.
"Wisconsin has a bit of a head start," Smith said, noting how the state began developing an automated eligibility system for its state-based health insurance programs. "That's one thing that makes this state a leader."
Still, one of the first steps Walker took on his first day in office was to authorize Attorney General J.B. Van Hollen to join 25 other states in a lawsuit challenging the constitutionality of the health care law. A federal judge has ruled in favor of the states, but the Obama administration has filed an appeal. The case is expected to ultimately be decided by the U.S. Supreme Court, and that could take a while.
"While Gov. Walker strongly opposes ObamaCare and firmly believes it is unconstitutional, Wisconsin still has an obligation to implement the law in a way that best fits our state," said Walker's spokesman, Cullen Werwie. "If a health insurance purchasing exchange is created in Wisconsin, it is crucial that it be uniquely Wisconsin."
Wisconsin is carrying out its exchange responsibility with an emphasis on a free-market approach, Smith said. He said the new administration's focus will be heavy on information and light on regulation.
"Part of what we believe is important with this exchange is to demonstrate that it should not be used in a regulatory manner that would disrupt our competitive market," Smith said.
Wisconsin applied for the innovator grant while former Gov. Jim Doyle was still in office. Awardees were selected based on their technical expertise, their readiness to develop information technology for exchanges, the adaptability of their systems to other states and a demonstration that planning already was under way.
Through the exchange, Wisconsin envisions improving the delivery of affordable care to as many as 160,000 people in the nongroup market, 770,000 BadgerCare Plus and Medicaid clients and 1 million small-business employees, according to a description of the project.
"Wisconsin's proposal envisions a single, intuitive portal through which residents can access subsidized and nonsubsidized health care and other state-based programs," HHS said in a statement announcing the grant awards. "The exchange will integrate across health and human services programs to promote efficiency and lower overall administrative cost."
Smith said while state officials are ahead of schedule in creating its exchange, some major challenges remain. He said the state has yet to hear from federal officials about how to build in tax subsidies and credits and other income information necessary to determine eligibility.
"The technical challenges are enormous," Smith said. But, he added, "from our perspective we feel very confident about our ability to manage the project."
The exchange effort is being led by the Wisconsin Office of Health Care Reform, which Doyle created to administer the Patient Protection and Affordable Care Act. In December, the office released a report outlining its vision for the state's insurance marketplace. A prototype can be found at https://exchange.wisconsin.gov.
The nation's major health insurance providers support the exchanges and believe the early-innovator effort is a wise endeavor, said Robert Zirkelbach, a spokesman for America's Health Insurance Plans, which represents nearly 1,300 insurers. But providers want to ensure that the exchanges are done right, Zirkelbach added, so that choice and competition are maximized.
"We strongly support the concept to provide one-stop shopping so people can search for a plan that's right for them," Zirkelbach said. "These early-innovator grants are a good way to see what models work best and prevent each state from having to reinvent the wheel."
