The PA Chamber recently presented testimony at a public forum hosted by the Pennsylvania Insurance Department on the creation of health insurance exchanges, as required by the federal Patient Protection and Affordable Care Act.

Exchanges are one-stop shops where consumers and small businesses can comparison shop for health insurance. Under the federal health-care reform law, states can develop their own exchanges or default to the federal government. The Insurance Department is hosting a series of statewide forums designed to educate and seek input from various stakeholders, including the business community, about how exchanges should be governed and operated.

In his testimony, PA Chamber Government Affairs Director Sam Denisco first stressed that the creation and administration of a health-care exchange in Pennsylvania should be the responsibility of state government, noting the state’s viable existing insurance regulatory infrastructure.

Denisco explained that while the PA Chamber did not support the health-care reform law for a myriad of reasons, the law’s flexibility with regard to the development of state-run exchanges gives Pennsylvania the opportunity to ensure a strong foundation for the system. 

He asked that during the deliberation process, the Insurance Department consider the business community’s guiding principles on the development of the exchange system. 

One such principle is that the exchange be set up as a market organizer and not a market purchaser, letting market conditions determine rates. Other suggestions include allowing the existing health insurance market to continue operating outside of the exchange; and ensuring a level playing field for new and existing market participants.

Another PA Chamber principle – insisting that the exchange functions as an information portal – was also highlighted. Denisco said the goals of the exchange system should be educating consumers on their plan options, evaluating eligibility for enrollees and providing information on cost and quality.

Denisco also shared PA Chamber members’ position that extraneous fees supporting the exchange are used for the system users alone. Finally, he suggested that an annual performance report be issued each year reflecting on the number of uninsured people acquiring coverage; the number moving from employer options to an exchange; and the average retention of individuals in the exchange. 

In summary, Denisco’s message on behalf of businesses large and small was that if the system is crafted to become a portal of valuable information, it can promote a responsible handling of health-care plans by public and private entities, while fostering open communication and competition. 

However, he stressed that the involvement of all concerned parties – consumers, stakeholders, public and private officials - is critical in shaping a health-care exchange system plan that works for all Pennsylvanians.

“Moving forward, I hope that you will strongly consider including representatives of the business community in stakeholder discussions relative to exchange development,” he told the forum audience. “The PA Chamber looks forward to working with you and other policy makers in the near future.”