Employee Benefit News for School, City and County Employers

MN health insurance exchange takes steps forward

Written by Valerie Ortiz | May 9, 2013 7:28:01 PM

Minnesota is one of several states choosing to build its own health insurance exchange in response the Affordable Care Act. States that do not create an exchange will have their system controlled by the federal government. Minnesota's system is expected to serve 500,000 state residents.

Healthcare exchanges - also known as benefits marketplaces - will be digital platforms upon which U.S. residents and small businesses can shop for and purchase healthcare coverage.

Although Minnesota has come across several legislative roadblocks and grapples with the same uncertainties all the states face regarding the ACA, the state is making significant strides in establishing its health exchange, according to Insurance News Report. The Minnesota Department of Commerce is working with 15-member task force that is in charge of looking over the program's progress.

In addition, the state hired an advertising company to spread news about the insurance marketplace to increase awareness and public understanding. Informing people of the healthcare exchange is most likely a necessary endeavor, as the Kaiser Foundation's statistics reveal 4 in 10 U.S. citizens are still unaware of or confused about healthcare reform.

The federal government provides states building their own exchanges with funding to cover its development, and states are using some of that money to educate its residents about the ACA.