Utah is ahead of the game in some respects regarding health reform. In 2006, then Governor Huntsman realized Utah was failing its citizens in the realm of affordable health insurance. According to a report done by United Way of Salt Lake, health insurance was one of factors that contributed greatly to Utahn's financial instability. Considering this issue, a work group of community leaders and a legislative health reform task force collaborated to find solutions. One approach to financial stability was found in the use of a Health Insurance Exchange, roughly modeled by the state of Massachusetts. And thus, was born the Utah Health Exchange. Originally it was designed to be a:
"Conservative, market-driven framework for reform that will enhance individual responsibility and consumer choice while improving overall quality and access."
Watch this short video released by the Utah Health Exchange discussing the intended features and benefits narrated by Lt. Gov. Greg Bell in January...
According to the Utah Health Exchange website, the mission is:
"To provide Utahn's with a one-stop shop to help them be more in control of their health, health care, and health financing decisions. When it is fully implemented, it will be the central launching point to guide consumers to the information they need, including finding the right health insurance program and learning more about cost and quality. The end goal is to help consumers make better choices."
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| Signing of the exchange. Photo by Stacey Earle. |
The exchange formally opened on August 2009 for the individual/family product market as well as a limited launch for the small group market. The small group market was designed for insurance to be bought as a defined contribution health plan where the employer dedicates a fixed amount toward benefits and the employee can choose what coverage they want. The individual/family product market is basically a page of information within the exchange website detailing places people can look for health insurance, such as eHealth Insurance. It also lists several local producers(insurance companies). Unfortunately the Utah Health Exchange is not focused on the individual/family market right now. So, a quick Google search could basically return the same information. The Utah Health Exchange merely conglomerates the information into one convenient location.
The small group launch was one step forward and a couple steps back. As with any project without blueprints, mistakes will be made. Unfortunately, enrollment was low(only 11 of 99 original employers enrolled), costs were not lower and the application process was difficult for most. The number one reason people dropped out was because of cost. According to Patty Conner, Director of the Utah Health Exchange, money was tight and man power was low. (See Patty's bio here). But the staff over at the Office of Economic Development, where the Utah Health Exchange is housed, have vowed to get it right.
What Does the Exchange Look Like Today?
*As of April 1st, 2011 42 employers are enrolled covering approximately 3,000 lives. 20% of those were previously not covered.
*Ongoing enrollment rather than the traditional twice a year.
*The technology is getting fixed to create a better ease of use with a consumer approach.
*The large employer group market(over 50 employees) is not allowed into the exchange.
*They received a $1 million, federally funded, exchange planning grant. They are using these funds on:
- Technology
- Improving the individual market
- Creating transparency tools
- Designing a call center, also known as the Customer Interactive Solution for consumers, producers, brokers or anyone trying to navigate the exchange.
- Getting insurance brokers trained.
The staff at the exchange are busy, very busy, trying to solve the issues of cost containment and lack of enrollment and technology woes, all while only two staff also run the day-to-day operations
Can they do it?
Continue coming to the Exchange Learning Network as we follow the unfolding of Utah's largest health reform efforts to date.
Health insurance plans can be a growing cost for small business owners. This depends on the increasing amounts of interest the owners have to pay which outpaces the wages.
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