Red State Idaho Launches Its Own Obamacare Exchange
Phil Galewitz
November 12, 2014 - Kaiser Health News
Idaho on Saturday becomes the latest state to launch its own health insurance
exchange under the federal health law, with marketplace officials promising an
easier shopping experience for consumers and greater responsiveness to insurance
agents.
But the exchange, yourhealthidaho.org, will be
challenged to do as well as the federal insurance exchange during the first open
enrollment period that ended last March. About 76,000 Idahoans signed up for
private coverage at healthcare.gov, one of the most
successful enrollments in any state.
Idaho will be one of a dozen states, along with Washington, D.C., to run
its own online marketplace this year — and the only one whose state government
is completely controlled by Republicans.
In 2013, Republican Gov. C.L. gButchh Otter and powerful business leaders —
who dislike Obamacare — persuaded the legislature to build a state exchange
to keep control in Boise and save money for consumers.
That decision may become much more significant since the Supreme Court
decided last Friday to hear a lawsuit challenging the governmentfs authority to
grant subsidies to residents in states that do not run their own marketplaces.
The high court is scheduled to hear the case early next year and rule by the end
of June. More than 80 percent of people buying coverage in state and federal
exchanges received subsidies.
In the short run, however, Idahofs switch may mean little to consumers given
how well the federal exchange worked by the close of the first open enrollment
period, said Sabrina Corlette, senior research fellow at Georgetown Universityfs
Center on Health Insurance Reforms.
After overcoming serious technical troubles in the first two months of open
enrollment last fall, the federal exchange had fewer glitches than most
state-run exchanges. Those glitches cooled state officialsf interest in building
their own websites, and led Oregon and Nevada this fall to abandon their
troubled websites and switch to the federal exchange.
With a final deadline of Friday for states to apply for federal funding to
build their own exchanges, itfs unlikely many others will follow.
Idaho is using $35 million in federal money to build its exchange seeking to
help 165,000 residents buy coverage. Will it be worth it?
gI donft know if it will make a big difference or not,h said Ryan Heider, a
Twin Falls, Idaho insurance agent and president of the Idaho Association of
Health Underwriters.
The biggest challenge agents will face is handling the surge of signups
expected during this yearfs three-month open enrollment period that ends Feb.
15. Last yearfs open enrollment ran for six months.
And consumers will have only a month to choose a policy if they want their
coverage to begin in January.
But if there are any issues, agents hope it will be easier to get answers
from Boise than Washington.
gIt was a challenge getting people to help us this past year with
healthcare.gov, because they didnft have specific information for our state,h
Heider said.
Officials at Blue Cross of Idaho, the statefs dominant health insurer, say
they were pleased to give input to develop the state exchange, emphasizing the
need to keep administrative costs low and maintain a central role for insurance
agents and brokers.
The Idaho exchange will charge insurers 1.5 percent on premiums to cover its
overhead, compared to 3.5 percent on policies in the federal exchange. The lower
surcharge will mean lower prices for consumers since insurers pass on those
costs.
The surcharge will be the main source of revenue for the Idaho exchange
starting next year when all state marketplaces must be self-sustaining.
gOur state exchange will be very helpful for our citizens,h said Blue Cross
CEO Zelda Geyer-Sylvia, who is also a member of the statefs exchange board. gWe
believe the state made the right decision to have its own exchange.h
Until this week, Idaho was one of eight states using a gpartnershiph model
with the federal government in which the state did everything except build and
run the website that handles enrollment.
Only one other state using a partnership exchange — New Mexico — is
moving to convert to its own exchange though that wonft happen until the fall of
2015 at the earliest.
While Idaho has some of the lowest insurance costs in the nation, its
uninsured rate has traditionally exceeded the national average. That rate fell
from 19.9 percent to 16.6 percent in the past year, according
to a Gallup survey. The drop would have been even greater had Idaho expanded
Medicaid under the health law, but it is one of 23 states that chose not to.
Pat Kelly, executive director of the Idaho exchange, said having a
marketplace with the name Idaho in it will attract more residents. The statefs
site provides answers to common questions and makes it easy to see the plansf
benefits and prices by zip code.
gThis is an Idaho solution,h he said. The exchange launched a gwindow
shoppingh feature on Oct. 1 so people could compare plans before open enrollment
begins on Nov. 15. More than 50,000 people have already used it.
Kelly credits Idahofs strong first year enrollment to the statefs heavy use
of social media such as Facebook, advertising on the Internet radio site
Pandora, numerous promotional events across the state and heavy reliance on
agents and brokers.
This year, five health insurers and four dental carriers will sell 198 plans
on the exchange–52 more than last year.
Mountain Health Co-Op is a new health plan on the exchange and has priced
many of its offerings lower than the other carriers. Since insurance agents
helped sign up more than half of this yearfs enrollees, the exchange is working
with them to help people renew for next year.
After nearly two years of work and countless task force meetings with
industry leaders and advocates, Kelly is confident the technology behind
exchange will work. Blue Crossf Geyer-Sylvia is too, but she
acknowledges, gWe are really nervous.h