State Health Insurance Exchanges Going Bust

From the Washington Post:

Nearly half of the 17 insurance marketplaces set up by the states and the District under President Obama’s health law are struggling financially, presenting state officials with an unexpected and serious challenge five years after the passage of the landmark Affordable Care Act.

Many of the online exchanges are wrestling with surging costs, especially for balky technology and expensive customer call centers — and tepid enrollment numbers. To ease the fiscal distress, officials are considering raising fees on insurers, sharing costs with other states and pressing state lawmakers for cash infusions. Some are weighing turning over part or all of their troubled marketplaces to the federal exchange,, which now works smoothly.

Well, whether the federal exchange “works smoothly” or not is a discussion for another day. Although, I would beg to differ with the WaPo. A more appropriate description of might be that it works illegally, because it pays tax credits to insurers without any legal basis for doing so.

That is the question in the Supreme Court case King v. Burwell. If the Supreme Court decides for the plaintiff, will effectively wind down (because it won’t have any more access to taxpayers’ money). With state-based exchanges failing, the future of Obamacare is in great doubt.


Comments (1)

Trackback URL | Comments RSS Feed

  1. John Fembup says:

    I thought ACA requires all Exchanges be financially self-supporting after a specified date.

    Oh, wait. “ACA requires”? We’ve learned since 2010 that “ACA requires” is immaterial at the option of the secretary HHS, or the president.

    Sorry. Whatever was I thinking?