Employee Benefit News for School, City and County Employers

State-run exchanges could be a thing of the past

Written by Valerie Ortiz | Jun 9, 2014 3:03:54 PM

Many of the state-run health insurance exchanges had rocky rollouts of which they never truly recovered from before the open enrollment period ended. Now, some of these states are rethinking their marketplaces, as they are anticipating they will need fresh funds to mend their exchanges. However, The Heartland Institute suggested there is the possibility that states with troubled marketplaces will end up opting for the federal exchange instead.

According to an analysis by The Wall Street Journal, Maryland and Minnesota are two of the five states that are expecting they will need to spend nearly $240 million to improve their exchanges. Some of the money could come from their remaining federal grants, but the states may also need to dip into their own funds and apply for new federal grants. According to the Journal, state lawmakers are already anticipating that their states will have to use money that would otherwise go to improving their infrastructure and strengthening their schools.

For Maryland, state exchange officials told the Journal the state already spent $118 million on its marketplace, but needs an additional $40 million to $50 million to fix its exchange. Minnesota is looking at needing less money than Maryland, as it may only need up to $4.95 million to improve its exchange.