‘Capitol Connection’ – Health Insurance Exchange Rolls Out

This fall, the Affordable Care Act will be rolling out with the establishment of a new health insurance exchange. Commonly referred to as ObamaCare, this law stands to change the way Connecticut residents obtain healthcare insurance. This federal legislation was voted on by the U.S. Congress and not by the Connecticut General Assembly. Since federal law requires our state to set up an exchange, the state had to decide whether to oversee its establishment or allow federal administrators to develop the exchange. Connecticut opted for the former. In a matter of months, the new exchange will launch an open enrollment period.

Since this issue will impact many of the residents who I represent, I wanted to share some information about this new and complex process and how it could affect you. Access Health CT, the official name of our state’s new health insurance marketplace, will serve as a resource for individuals, families and small businesses to purchase healthcare coverage from health insurance companies and public healthcare programs. It was established to comply with the federal healthcare reform law that requires every state to have a “health insurance exchange” by January 1, 2014.

How can you enroll through the exchange? The first enrollment will begin on October 1, 2013 and ends on March 31, 2014. Each year, there will be a new enrollment period. The process can be started through the Access Healthy CT website. Here, you will be able to compare health insurance plans, see if you qualify for assistance or public healthcare programs or complete an application to apply for a plan or program. In theory, the competition between insurance companies would keep insurance prices low and allow the uninsured to obtain insurance.

Of course, setting up the exchange has not gone without complications. Reading news coverage lately, several challenges have arisen. For example, the exchange’s CEO recently stated that “only roughly 3 percent of people will be able to get by without some kind of phone call or assistance.” That means that 97 percent of consumers will have to contact the exchange. Perhaps even more troubling is the length of the average call for assistance. It is expected to last about 55 minutes.

Some insurers have already decided to drop out of offering coverage. One company, called ConnectiCare Benefits, Inc., has withdrawn its proposal to offer “small-group” health insurance through the exchange. This is a specific designation for small businesses with fewer than 50 employees. However, they will continue to provide individual plans.

On the other hand, one newly created insurer also reduced the proposed monthly premium for those who purchase coverage through the exchange. Unlike many other insurance companies, HealthyCT is a non-profit consumer operated and oriented plan (co-op). Some have expressed concern with the reduction because the group has no previous medical claims experience and relied upon an actuarial firm to develop the rate proposal.

Whether you support the Affordable Care Act or not, the new health insurance exchange will begin offering insurance to Connecticut residents later this year. The exchange will provide individuals, families and small businesses the opportunity to purchase health insurance coverage. It is estimated that between 80,000 and 100,000 Connecticut residents will obtain their insurance through the exchange during the first year. If you would like to learn more, please visit the Access Health CT website at www.AccessHealthCT.com.