Ohio Lt. Gov. Mary Taylor, who also directs the Ohio Department of Insurance, has announced that the state administration will not establish a state-run Ohio health insurance exchange as stipulated by Obamacare.
“Based on all of the information we have available for us today, the reports we’ve done, the information that is scant out of Washington about how we are required to comply, we have made a decision that we do not think it is in the best interest of Ohio citizens to do a state-based exchange at this point,” she said at a luncheon meeting of the Bowling Green Chamber of Commerce.
Though there is the possibility that the state will change its decision, the present stand is to defer to the U.S. Department of Health and Human Services to establish Ohio’s health exchange, which must be up and running by January 1, 2014.
Health care exchanges in all 50 states are one of the key elements of the 2010 health care reform. The idea of the exchange is to offer individuals and employees of small businesses a choice of Ohio individual health insurance policies with subsidies for those who deserve them.
Ms Taylor stated that the yearly cost to the state to operate an exchange would be between $30 million and $40 million, in addition to initial start-up costs. The expenses involved are too much and would not benefit Ohio residents, she said.
In January 2012, Taylor had voiced objections to the idea of the health exchange, saying that it could mean new fees on the insurers who sell policies there or policy buyers. She said that the federal government was not clear about what benefits must be covered in plans offered through such exchanges. She had also expressed fears that the Ohio administration will have “little control” over the health insurance exchange, whether it is set up by the federal government or by the Kasich administration.
Whether a state-run health insurance exchange is set up or not, Ohio’s residents can always rely on the services of licensed and experienced Ohio health insurance brokers to help make the right decision about the type of coverage for them, their family or their small business.
About the Author
Tracy McManamon is an experienced and licensed Ohio health insurance consultant. His website One Source Benefits is where he offers all types of health insurance Ohio plans with free quotes. For more details call 1-877-549-1212.
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