Galen Institute exposes why health insurance exchanges defined in PPACA won’t work

Galen Institute exposes why health insurance exchanges defined in PPACA won’t work. Exchanges create more bureaucracy and place more burdens on states already strapped for cash

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The Galen Institute

“Like most of PPACA, state insurance exchanges as outlined by this law will not accomplish the goals they were designed to address,” said Grace-Marie Turner, president of the Galen Institute.

Alexandria, VA (PRWEB) May 31, 2012

Health insurance exchanges run by the states as defined in the Patient Protection and Affordable Care Act (PPACA) won’t work, won’t increase access to affordable health care, and won’t do anything to improve health outcomes or increase value, according to a new Galen Institute study.

“Like most of PPACA, state insurance exchanges as outlined by this law will not accomplish the goals they were designed to address,” said Grace-Marie Turner, president of the Galen Institute. “The way to increase access to affordable health care is not through more complex and onerous bureaucratic rules, but rather by reducing barriers to competition and consumer choice and removing regulations that make coverage unaffordable today.”

The just released paper by Rita E. Numerof, Ph.D., entitled “What’s Wrong with Health Insurance Exchanges,” explains the problems states will face if they go down the path of creating health insurance exchanges as outlined in PPACA. The exchange requirements will result in the creation of administrative behemoths that will limit individual choice and drive up costs, just the opposite of their intent. A subsequent paper will offer recommendations on a framework for finding the right solution for states’ unique needs.

Numerof delineates why the state insurance exchange requirements are unrealistic and burdensome. These include intensive data-gathering responsibilities that delve into an individual’s private affairs while adding new costs for states and employers as well as regulating insurance choices.

“Rather than focus on compliance with PPACA and assume its burdens, legislators should take inventory of the problems plaguing the health insurance markets in their states. Then they can confront the most critical issues of insurance coverage, care delivery, and payment reform to ensure that residents have access to affordable care and enjoy better health outcomes at lower cost,” Numerof concludes.

The Galen Institute is a non-profit public policy research organization devoted exclusively to advancing free-market ideas in health policy. Founded in 1995, the organization promotes a more informed public debate over ideas that support innovation, individual freedom, consumer choice, and competition in the health sector. For more information, visit http://www.galen.org.


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