States Have 3 Options

Health Care ManagementHealth care managers are closely watching how the health reform law is being implemented.  Students at Globe University are gaining the skills needed to be successful in the changing field of health care.

The Affordable Care Act (Obamacare) mandates that there will be health insurance exchanges to make it easier for consumers and employers to find and compare  insurance plans.  States have three options to choose from in setting up these exchanges.

  1. State officials set up and manage state exchanges
  2. States work with the federal government to set up and manage exchanges.
  3. States depend on the federal government exchange, set up and managed by the federal government.

At this time, 18 states have chosen the state based exchange option.  There are six states that are planning on partnering with the federal government and the remaining states are either undecided or defaulting to the federal insurance exchange option.

Those states who have chosen to run their own insurance exchanges are setting standards that work best for their state.  California is looking at limiting theHealth Care Management number of insurers and plans.  They plan to choose which plans they will accept.  Colorado, on the other hand will accept all plans that meet their standards.  The federal insurance exchange will also accept all plans meeting their criteria.

Many health insurance providers plan to offer plans in the state run exchanges as well as the federal exchange.  While a federal exchange may have some benefits to providers in that there is only one set of standards to be met, most insurers would prefer the state run exchange options.  Insurance providers already have relationships with state regulators which they would not with federal regulators.  Federal regulators will be covering multiple states and may not have the market specific understanding of state regulators. Providers would also prefer that exchanges accept all plans that meet their standards so they cannot be excluded from competition.

Health care management careers are growing as the Affordable Care Act is being implemented.  Contact Globe University to learn more.

Jerry Lovrien has held positions of Chief Executive Officer at health and behavioral health facilities in Minnesota and Washington State. He served successfully as State Director/Commissioner of Health and Behavioral Health in Georgia, West Virginia and Minnesota. Jerry has taught high school through graduate courses and is currently an Instructor with Globe University.