The Free Press, Mankato, MN

Editorials

Related Photos

  • cartoon 12-2

    cartoon 12-2

December 1, 2012

Our View: Exchange oversight must have business input

The Free Press

— Minnesota's state health insurance exchange is starting its slow path to federal approval and it's going to be more expensive than previously thought.

The exchange is part of the federal health care overhaul, commonly called Obamacare, which is an insurance marketplace where consumers and small businesses comparison shop for health insurance policies. It is supposed to be in place next year with coverage taking effect in 2014. While many states are behind in applying for the exchange, Minnesota has applied and is seeking a total of $110 million from the federal government to just develop the exchange.

A governance structure is slated to be approved by March 31 or the state will default to a federal exchange, although there is some suspicion extensions would be granted if there is a good faith effort being shown.

Earlier estimates on the cost of such an exchange of $40 million now are being projected to cost $64 million in 2016 when the state exchange is supposed to be self-sustaining. As of yet, there are no plans for how it will pay for itself and this is where the opportunity lies for Gov. Mark Dayton. Like it or not, the courts have spoken and the results of the recent election seem to confirm Obamacare is here to stay. Realizing that, we need to ensure this does not become a financial albatross for taxpayers.

Dayton seems to want multiple stakeholder input in overseeing the exchange, which is wise. Besides the obvious choice of health care professionals, he needs to pull in experienced business people who have management experience and can clearly frame the exchange in business terms.

The outcomes need to be determined on markets and business applications and not politically nice ideas. Minnpost reported that already within the DFL, there are fractures between what it termed pragmatists and idealists.

For instance, DFL Sen. John Marty has said he would push for advocates rather than industry professionals to lead the exchange. This could turn off other stakeholders and limit participation in the exchange. This would be a huge mistake since the success depends on people actually using it.

Critics are quick to point out the success of exchanges depends on them being patient-centered and market-based to provide good choices and good value. The more coverage looks like it is restrictive, beneficial to just a few or stifling insurer competition, the more likely it will fail.

Business people are keenly aware of developing products people will use profitably because failure is often not an option.

It's also incumbent upon this board to ensure not only that the exchange is easy to use but that they market the exchange wide on how it works and what benefit exists in using it. Just giving people a choice doesn't mean they will do it wisely as the shift from pensions to Individual Retirement Accounts have shown.

If we do not treat the exchange as a viable and self-sustaining entity designed with business acumen, it will become a very expensive taxpayer-funded entitlement.

 

Text Only | Photo Reprints
Editorials
  • mfp thumbgraphic Shelter for homeless right start To Mankato civic leaders for, once again, stepping up to address a growing demand for shelter by homeless women. The needs appears to be dramatic and continuing even though the Theresa House, Welcome Inn shelters and the CADA House program for domest

    May 18, 2013 1 Photo

  • Our View: SEC should act on ratings conflicts Money talks. In the continuing dispute over the all-too-cozy relationship between the people who create and sell financial products and the people who rate their risk, the money says: Shut up and let us do what we want. Minnesota Sen. Al Franken and

    May 17, 2013

  • Time runs short for Legislature Focus, Minnesota legislators, as you have many details left So much for the theory that one party controlling Minnesota's House, Senate and governor's chair would mean fast work in St. Paul. Exactly one week from the end of the 2013 regular session a

    May 16, 2013

  • records' seizure harms free press This has not been a good week for President Obama. First it was learned that the Internal Revenue Service was targeting conservative organizations with special scrutiny, the practice of which the White House said it was unaware. Then news surfaced th

    May 16, 2013

  • Investigate IRS action on groups The revelation that the Internal Revenue Service was targeting conservative groups has drawn criticism from both parties. But the Wall Street Journal this week revealed that the scrutiny went beyond groups that had "tea party" or "patriot" in their n

    May 15, 2013

  • Military needs new approach in assault cases Just when you thought the sexual assault problems in the military couldn't get worse, two events emerged last week to prove you wrong. The chief of the Air Force sexual assault prevention branch was arrested on suspicion of drunkenly groping a woman

    May 14, 2013

  • A watchdog carries on the fight In journalism circles, the Timberjay is the little newspaper with lots of moxie. This weekly newspaper Up North, in Ely, has established a tradition of fighting hard for the public's right to know. That's not a task to be taken lightly. It's a big, e

    May 13, 2013

  • What columnists and editorialists are saying about the issues of the day

    Hold IRS accountable for targeting conservative groups A bedrock principle of U.S. democracy is that the coercive powers of government are never used for partisan purpose. The law is blind to political viewpoint, and so are its enforcers, most espec

    May 12, 2013

  • mfp thumbuppic Rotary donation tops for kids To the Greater Mankato Rotary Club for its generous donation of money and time to the Southern Minnesota Children's Museum. The newly merged club was looking for a big project to support, and this one fits the bill. The $4 million museum project has

    May 11, 2013 2 Photos

  • From Cruz to Obama, race defines on issues WASHINGTON --- Enough with this "enough" business. Latest to the question of whether a person is sufficiently identifiable as belonging to a particular demographic is Ted Cruz -- the conservative Texas senator who happens to be of Hispanic descent. B

    May 11, 2013