The Heritage Version of The Health Insurance Exchange

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Presentation transcript:

The Heritage Version of The Health Insurance Exchange Robert E. Moffit, Ph.D. Director, Center for Health Care Studies The Heritage Foundation April 16, 2007 bob.moffit@heritage.org

Health Insurance Exchange A Single Market for Health Insurance. (Simplified Administration) Purchases by Individuals and Families, Not Employers Premiums Paid With Pre-Tax Dollars, Just like Employer-Based Insurance. (Section 125 Accounts) Portability of Coverage

The Functions of the Exchange Prepare descriptions of health plans for employers and employees Enroll employers and employees Collect and transmit insurance premiums Administer subsidies or premium assistance to eligible enrollees Certify plans as approved by the state insurance department

What “The Exchange” is NOT It is NOT a regulatory agency It is NOT a purchasing agency It is NOT a mechanism to standardize health benefits It is NOT a risk adjustment mechanism It is NOT a “Regional Alliance” with power to impose price controls or premium caps

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