Despite recent court rulings the ACA will likely be implemented substantially intact (one of the most rational analysis we’ve seen is here). This means many of our clients are beginning work on a Health Benefit Exchange (HBE) – a kind of super store for insurance shoppers. Over the next few months we’ll examine the challenges our clients face in planning and implementing HBEs and the solutions they find to those challenges. We’re going to start with just a few of the obvious challenges:
- Many of these initiatives are falling on state insurance commissions to implement because of their knowledge of state insurers. The interface for an HBE is required to determine eligibility and enroll eligible participants on the spot. This part of an HBE makes it more like an entitlement or grant program (Medicaid, TANF/SNAP etc). There are two technical challenges here. First, insurance commissions don’t have experience running large scale eligibility and enrollment programs. Second the IT staff of insurance regulators is typically quite lean, i.e. they don’t have the staff necessary to build and run the infrastructure required for such programs.
- States will need to make a decision early if they will support a single solution for all HBE needs or have separate solutions for individuals and small businesses. The needs of these two groups are different and alternatives must consider requirements for both groups.
- Developing an effective user interface (UI) to compare plans will be difficult. Insurance plans are not developed in a manner that promotes easy comparison. Different insurance companies often use variations in the way plans are presented to market their strengths. In addition to the policy implications associated with this there are also technical development considerations: How can plans be displayed and prepared? Should there be other features on an HBE site (e.g. health education information)? And, what are the best ways to design sites focused on consumers?
- The Federal Government recommends that states have a common web based front end for HBE Subsidies, CHIP and Medicaid programs (section 1413 and 2201 of the ACA). This includes both determination of eligibility and enrollment for these programs. Developing effective web front ends for any application is challenging. Finding an effective means of utilizing other state information services (eligibility determination and enrollment for these other programs) represents a challenge few states have conquered. Collaboration between agencies running entitlement and grant programs and the insurance agencies technology divisions will be a must to make an HBE work.
- Related to eligibility and enrollment, the volume of potential enrollees in an HBE supported plan will dwarf the current number of Medicaid users in a state. They will enroll over a relatively short time period. Insurance providers will need to be in the system. HBE projects need to plan an approach that gets insurance providers in the system and can screen a large number of applicants in a short time.
We are working with our clients to address these challenges. As common solutions emerge we’ll share those with you (along with other challenges we find!).
