This spring, the
In a time when bipartisanship -- particularly on the issue of healthcare -- is rare, the new online marketplace stands out as an example of good policy design that will reduce the cost of health insurance coverage for the 400,000 Pennsylvanians buying through the marketplace.
Creating a state-based marketplace, which has been considered in the past but rejected due to the cost and complexity of creating a new online system, has now become much easier and less expensive. Vendors experienced in designing, implementing, and troubleshooting state-based exchanges are now available to help states through the process, and the 12 states already operating a marketplace as well as the four in the process of doing so can offer best practices and lessons learned.
How will a state-based marketplace reduce the cost of health insurance?
Currently, it costs
Put simply, reinsurance is insurance for insurance companies. The state fund will insulate insurance companies from paying for extraordinarily costly healthcare, allowing them to reduce the cost of their plans on the marketplace.
This proposal is expected to quickly lower premiums across the board by up to 10% without costing taxpayers any additional dollars. The impact will be felt especially by the 20% of Pennsylvanians who do not receive tax credits through the marketplace because their income does not qualify them.
This reduction in out-of-pocket costs for Pennsylvanians comes at a critical time, particularly in light of a recent study that found that half of
Other benefits of the new marketplace
The new online health insurance marketplace’s benefits go beyond cost reduction, however. It will put oversight and control of our state’s health insurance marketplace where it belongs: in
What do Pennsylvanians need to know about the new marketplace?
The marketplace is expected to be up and running by 2020 so that people can purchase health insurance policies that will begin in 2021.
People who purchase their insurance through the new exchange will still be eligible for tax credits.
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