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Industry News

Hatch has HIX questions

Sen. Orrin Hatch (R-Utah) has more HIX questions; this time, he has raised issues about contractors for the federal exchange, The Hill reports. Some of the companies that received contracts to help build the federal exchange have been acquired since winning their contracts, and Hatch wants to know what Health and Human Services has done to ensure the new owners don't present a conflict of interest. (The Hill)



An alliance of Idaho businesses is asking state leaders to move ahead with a state health insurance exchange, according to the
Idaho Statesman. The Idaho Association of Commerce and Industry, the Idaho Medical Association and the Idaho Mining Association are all members of the alliance. "Idaho shouldn't dally in building a health insurance exchange, especially when we know doing it ourselves will keep the federal government out of our business," said alliance member Scott Gipson, president of Caxton Printers. (Idaho Statesman blog)

   

 

Governors behind on essential benefits

It's not just Republican-led states that didn't meet the recommended deadline for picking essential health benefits. Several states with Democratic governors missed it, too. Health and Human Services noted Sept. 30 wasn't a hard deadline. Nevertheless, many GOP state leaders used the occasion to criticize the administration for putting the ball in their court without issuing formal rules, Politico Pro reports. (Kaiser Health News; Politico Pro--subscription required)

  

State Updates

Colorado to operate its own HIX

Colorado Gov. John Hickenlooper has sent a letter to Health and Human Services stating his intent for the state to operate a state-based exchange, McKenna Long & Aldridge reports in its State of the States brief. According to the letter, Colorado will be relying on the federal government to administer the exchange's reinsurance and risk adjustment programs during its first year of operation. (JDSupra; the letter)



New York, Hawaii set HIX benchmarks 

New York has selected a health care plan offered by Oxford as the benchmark for the state's health insurance exchange, the Associated Press reports. Other insurers that participate in the HIX will have to match coverage. Hawaii Gov. Neil Abercrombie announced the Preferred Provider Plan, developed by the Hawaii Medical Service Association, will be the benchmark for the Hawaii Health Connector. (Associated Press; AP via BusinessWeek; Healthcare Payer News)

 

 

Penn. likely to miss November deadline

Pennsylvania Insurance Commissioner Michael Consedine reports the state will not be able to meet the Nov. 16 federal deadline for state health insurance exchange blueprints. Despite a $33.8 million grant awarded his department in February, he cites a lack of guidance, from both the state legislature and HHS, as hampering efforts. If the state does not build its own exchange, the federal government will do it for them; however, Pennsylvania will be able to create one further down the road. (Pittsburgh Post-Gazette; Insurance Journal)

 

 

Minn. considers how to pay for HIX

Minnesota officials estimate it could cost the state as much as $40 million to run its health insurance exchange in 2015. The state has received around $70 million from the federal government, but federal funds will stop in 2015, when state exchanges are required to be self-supporting. Possible funding sources include user fees, a health care tax, selling naming rights and advertising, and appropriations. Minnesota Public Radio notes the cost is likely to inflame existing political divisions over the state's HIX. (Minnesota Public Radio)


Innovators

Private exchanges gain traction

New private health insurance exchanges are emerging and established ones want to grow, challenging state-based HIXs and expanding the retail insurance market, Healthcare Payer News reports. Insurers are positioning themselves accordingly: Last year, Health Care Service Corp., WellPoint Inc. and Blue Cross and Blue Shield of Michigan said they'd buy majority ownership of Bloom Health, which operates a private HIX expected to be available in every state by the end of the year. The growth of private HIXs comes amid the rise of consumer-driven health plans and increasing interest in defined- contribution plans. (Healthcare Payer News)



Utah still pondering options 

With the Nov. 16 deadline for submitting state health insurance exchange blueprints coming up, Utah--which already has an exchange--considers three options. The state can scale up its current exchange, Avenue H, to meet federal standards and submit it; let the federal government set up an exchange that would be in competition with Avenue H; or partner with the federal government to create an exchange. While Gov. Herbert and his advisors met with legislative leaders recently, the Salt Lake Tribune reports no decision has been made. (Salt Lake Tribune)

    

Consumers & Providers   
Pediatricians concerned about HIX benchmarks

Among states that have chosen their benchmarks, small-group plans have emerged as a "popular, cost-effective option," American Medical News reports. Although pediatric services are one of the 10 required categories of services, various medical organizations, such as the American Academy of Pediatrics and the American Medical Association, have expressed concerns too many of the private benchmark plan options fall short on needed children's benefits. (American Medical News)  

 

 

PR firms promote HIX

New York-based PR firm Weber Shandwick will market what will eventually become federally facilitated HIXs, with a contract worth $3.1 million, Healthcare Payer News reports. California is paying Ogilvy Public Relations Worldwide roughly $900,000 to market its HIX. That plan, says the New York Times, "includes ideas for reaching an audience that speaks dozens of languages and is scattered across 11 media markets," such as advertising on coffee cup sleeves at community colleges to reach adult students and at soccer matches to reach young Hispanic men. With private and state-based HIXs vying for many of the same consumers, marketing and outreach may be a large factor in their success, according to Healthcare Payer News. (Healthcare Payer News; New York Times)

 

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MarketVoices...quotes worth reading

 

"The healthiest people are people who get up and go to work every day." --Tina Provencal, national corporate exchange solutions leader for Aon Hewitt, on why the private HIX risk pools are so attractive, quoted in Healthcare Payer News

 


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