Are the Wheels Falling Off the Federal Exchange Bus?

By Steve Davis - April 23, 2013

Over the past month, HHS pushed some insurance exchange elements to the back burner — or off the stove completely — until 2015. Given tight deadlines to start up exchanges and the federal data hub, it’s not surprising that HHS is focusing on just that — and delaying some nonessential elements. But what else might be delayed? And will exchanges, navigators, in-person assisters and the data hub all be ready to enroll the previously uninsured on Oct. 1?

Last month, HHS indicated it would delay a key feature of the Small Business Health Options Program (SHOP) in federally facilitated and state-partnership exchanges. The feature would allow employees to choose from a menu of health plan options in each metal tier. With the exception of employers eligible for the small-employer tax credit, it won’t make much sense for employers to get coverage through a public exchange in 2014.

But state-run exchanges are another story. HHS gave state exchanges the option of delaying the choice feature until 2015 or moving ahead as planned. But nearly every state exchange director I contacted told me they intended to stay the course.

And early this month, CMS told agents and brokers that they would not have access to a dedicated Web portal for selling coverage through federally facilitated and partnership exchanges, as was envisioned. The portals were to be producer-specific websites where brokers could offer clients side-by-side comparisons of plans offered through an exchange. CMS explained to industry trade groups that it didn’t have the resources needed to get the portals up and running in time for the start of the enrollment season. The delay does not apply to state-run exchanges.

Officials from two trade groups — the Independent Insurance Agents & Brokers of America and the National Association of Health Underwriters — told me they were surprised and disappointed by the decision. The advantage of selling coverage through an exchange is it gives brokers and their clients a way to look at multiple plan options. The portal also would have made it easier for agents and brokers to manage policies throughout the plan year.

http://aishealth.com/blog/health-reform/are-wheels-falling-federal-exchange-bus