(Obamacare) Insurers to pay 3.5% fee to use exchanges (Representatives, premium, Reed)
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Now, the federal exchange will do the same. The Obama administration is essentially making a bet: Health plans will decide the benefits of participating on the exchange outweigh the cost of paying a 3.5 percent user fee. Insurers who participate will have access to millions of Americans who can only use their insurance subsidies on this government-administered marketplace.
One other thing worth pointing out here: This is one of the decisions that states do get to make if they build their own exchanges. They can decide whether to use user fees or grants or some other financing mechanism to make their exchange run. In the federal exchange, states don’t have that option: They go with the rules that the federal government sets. That’s essentially what they’re ceding when when states decide not to move forward on these marketplaces.
I really don't see anything outrageous here.
If you don't want to absorb the cost in taxes, you need to charge a fee.
If you don't want to absorb the cost in taxes, you need to charge a fee.
So the Fed needs this fee to maintain the pool but the states don't ?
Seems to me the cost to run the pool within a state would cost the same no matter who runs it.
States would need to find another outlet to cover the cost.
Well they're going to get tons of new clients so they can make up their losses in volume.
Yes, there will be some fixed expense savings for the LARGE health insurers. I don't know how extensive that will be.
Not to mention the "efficiency" rule was put in there to create a barrier to entry and force out the smaller health insurers. Of course it was sold as "protecting the consumer". lol.
It's going on in farming now too. Big agra outfits trying to push "consumer protection" legislation that requires more expensive equipment that the little guys can't spread the costs of around. Yay, less competition via bribing your representatives....
No, they'll make up their losses by charging us more. They aren't going to take losses.
Because if they take too many losses, they go out of business. So we will all just pay more.
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Of course it was sold as "protecting the consumer". lol.
