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Health Insurance Exchanges in Texas
The Affordable Care Act (ACA) includes a provision in which health insurance exchanges are to be set up to provide affordable health coverage to individuals and small businesses. Each state was given the option to either develop a state-based exchange using federal grants, create a partnership exchange in which the state and federal governments each handle specific tasks, or to decline and fall under the federal exchange.
States were required to communicate their intentions by December 14, 2012 before the date was extended to allow undecided states more time. As of December 12, 18 states including Washington D.C. have declared their intentions to create state-based exchanges, seven states are planning for partnership exchanges, 21 states will fall under the federal exchange, and five states are undecided, according to the Kaiser Health Foundation's statehealthfacts.org.
Texas has declined to create a state-based health exchange. Therefore, Texas will fall under the federal government's health insurance exchange.
Next Steps:
- In March 2013, employers will be required to provide employees with information regarding the health exchanges. This deadline is expected to be extended as the government works through the details of the plans.
- In January 2014, state, partnership, and federal health insurance exchanges are expected to be operational. Blueprints of these plans are currently being reviewed by government agencies.
No action is needed by our clients at this time.
We will continue to monitor the situation closely and relay information as it is released by various governing agencies. For more information on health insurance exchanges, including a summary of each state's decision, please visit the Kaiser Foundation's statehealthfacts.org. |
