In the 2013 Legislative Session, lawmakers are hoping to dispel the insurance exchange myths and bring to light the facts of the state-run program.
Sen. Dan Schmidt of Latah and Benewah County said the United States spends more than one and a half times on insurance than the next country, which is Switzerland.
Schmidt said, for a country that spends so much on healthcare, it is not as healthy as someone would think.
“We spend a ton of money on healthcare in this country, and we don’t get much for it,” Schmidt said, “We are not healthier than Switzerland.”
Schmidt said people should be discussing the health insurance exchange.
“We have a problem with healthcare, and we need to be talking about it and addressing it,” Schmidt said, “And I don’t think the reforms that have been recommended are going to make most people’s lives miserable.”
Schmidt said the government will have to do some things differently.
“The healthcare industry is going to be changed. It’s got to be,” Schmidt said.
The office of Gov. C.L. “Butch” Otter released a list of myths and facts concerning the health insurance exchange.
Included in this list is the myth that by rejecting a state-run health insurance exchange, Idaho would not be able to take part in any exchange.
According to the governor’s office, every state is required to have a health care exchange, it just depends on if the state or federal government will create and manage it.
If states ignored the Patient Protection and Affordable Care Act, the federal government would become more involved in the state affairs by controlling insurance markets. This would cause job loss to the state, giving the federal bureaucracy more power and accepting fees imposed by the federal government for operating costs of a federal exchange, according to the governor’s office.
A current proposal is to charge insurance companies a 3.5 percent fee for each policy premium for operating expenses of the new system.
Another common myth is state businesses will have no input if the federal government is allowed to run the exchange.
But, if Idaho took the federal exchange, businesses and consumers wouldn’t be able to voice their complaints, make changes or petition the federal government, according to the governor’s office. Stakeholders would be able to participate in a state-run exchange, but not in federal.
According to the governor’s office, many people believe the state will have no flexibility in the administration of a state-run insurance exchange and that the federal government will remain in control.
The governor’s office said the fact is, even with Idaho following rules and regulations set by the federal government, the state has the ability to make certain decisions on the creation and administration of the state-run exchange. This will depend on agencies already in place to continue performing the same functions instead of creating identical federal functions.
Those who are already covered by health insurance, have Medicare, are covered by Medicaid or decide to buy insurance outside of the exchange are not required to participate in healthcare coverage.
The governor’s office said another myth is that by the governor supporting a state-run exchange, he also supports the Affordable Care Act.
“The Governor’s intention, by supporting a state-run exchange, is to assert our independence and our commitment to self-determination, while fulfilling our responsibility to the rule of law,” according to the governor’s office.
Emily Johnson can be reached at [email protected]