Small Town News

Health Exchange Approach to Reform will Give Consumers Choices Control

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Americans love having options. From the food we eat to the cars we drive, we relish making our own choices based on our preferences and what is best for ourselves and our families. Health care should not be an exception. Yet the proposals put forward by the Obama administration and the Democratic Congressional leadership would create a massive government plan for health care and crowd out the choices Americans expect.

A federal government takeover of our nation's health care will limit, if not eliminate, an individual's options in health care insurance and delivery. This does not mean "no" is the answer to reform, either. In Texas, we lead the nation in the number of uninsured, which raises the premiums and property taxes for those who are covered. And many families who want insurance do not have access to affordable choices. Now is the time for other approaches. And states can play an important role.

Fortunately, there are promising market-driven, consumer-directed solutions to health reform that beg a closer look. One such innovation in health insurance reform is the health exchange.

Under the current system, most employees are presented limited options regarding their coverage - and their choice is to take it or leave it. However, the health exchange places all the decision-making power into the hands of the consumer. A state-level health exchange would allow consumers to compare plans at a single shopping point. Just as many travel websites are a commercial compendium for multiple airlines, a health exchange is an online marketplace for health insurance coverage options. Plan information is presented in a standard format, and consumers can complete an electronic application and enroll online.

A hallmark of a health exchange is that it utilizes minimum government input and maximizes private competition and consumer choice.

The benefits to consumers are clear. Participation is elective, and employees are empowered to choose the coverage that best meets their needs. Their premium contributions are made with pre-tax dollars if they are part of a company unit. Workers who currently do not qualify for employer-sponsored health coverage, such as part-time or contract employees, could be eligible to receive an employer contribution toward their health insurance. The employer's set contribution would be applied to the premium cost, and the employee would pay the difference.

A health exchange would streamline coverage for families with both spouses employed by allowing contributions from multiple employers to be pooled and applied to a single health insurance plan that is best for their household. It could eliminate gaps in care because plan benefits are portable from job to job, provided that both employers participate in the exchange.

This approach is also profitable for employers. A defined contribution system dramatically simplifies their role in health care coverage, reducing an employer's responsibility to setting the contribution rate for their staff. The approach would significantly lower administrative costs and labor, as employers would no longer face the cumbersome task of selecting benefit structures, insurance companies or provider networks, and negotiating a single plan that works for all of their employees. Additionally, making a contribution instead of paying a defined benefit allows employers to plan for future health benefit costs and budget accordingly.



Copyright 2009 Stonewall County Courier, Aspermont, Texas. All Rights Reserved. This content, including derivations, may not be stored or distributed in any manner, disseminated, published, broadcast, rewritten or reproduced without express, written consent from SmallTownPapers, Inc.

© 2009 Stonewall County Courier Aspermont, Texas. All Rights Reserved. This content, including derivations, may not be stored or distributed in any manner, disseminated, published, broadcast, rewritten or reproduced without express, written consent from DAS.

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