A new Urban Institute report outlines four rationales for why multi-state exchanges, an option under the new healthcare reform law, are established.
Author Linda Blumberg, senior fellow in the Urban Institute's Health Policy Center, explains four reasons why states may join together to establish multi-state exchanges:
• Given the common tasks that need to be performed, administrative economies of scale could be significant.
• Regional exchanges covering large metropolitan areas that cross state boundaries may simplify reform mandates.
• Multi-state exchanges may promote pooling across state lines.
• Multi-state exchanges could lead to a critical mass of insured persons to create stabilized risk pools in low-population states.
Ms. Blumberg adds multi-state exchanges will most likely focus on shared administrative structures and efficiencies rather than on risk-sharing. Risk-sharing could potentially lead to one state's population effectively subsidizing another state's population.
Read the full Urban Institute report about multi-state insurance exchanges (pdf).
Read other coverage about insurance exchanges:
- Wisconsin Shows Progress With Health Insurance Exchanges
- House Subcommittee Votes to Defund Insurance Exchanges
- Tea Partiers Blocking State Plans for Insurance Exchanges
Author Linda Blumberg, senior fellow in the Urban Institute's Health Policy Center, explains four reasons why states may join together to establish multi-state exchanges:
• Given the common tasks that need to be performed, administrative economies of scale could be significant.
• Regional exchanges covering large metropolitan areas that cross state boundaries may simplify reform mandates.
• Multi-state exchanges may promote pooling across state lines.
• Multi-state exchanges could lead to a critical mass of insured persons to create stabilized risk pools in low-population states.
Ms. Blumberg adds multi-state exchanges will most likely focus on shared administrative structures and efficiencies rather than on risk-sharing. Risk-sharing could potentially lead to one state's population effectively subsidizing another state's population.
Read the full Urban Institute report about multi-state insurance exchanges (pdf).
Read other coverage about insurance exchanges:
- Wisconsin Shows Progress With Health Insurance Exchanges
- House Subcommittee Votes to Defund Insurance Exchanges
- Tea Partiers Blocking State Plans for Insurance Exchanges