The Oregon Center for Public Policy (OCPP) issued two briefs on the Oregon Health Insurance Exchange, pointing to challenges around adverse selection. The Oregon Legislature passed SB 99, which authorized creation of a state insurance exchange, but before implementation moves forward, a business plan must be approved during the 5-week 2012 Oregon session.
Attention will be paid to whether the exchange leads to affordable insurance plans, and can avoid adverse selection, which would be make it difficult for the exchange to be sustainable.
The first report puts forth that the exchange must negotiate with insurers for the lowest possible prices if it is to succeed. This is a premise that our organization challenged during the 2011 legislative session, primarily due to the relationship of the role of the Insurance Division, and the fact that SB 99 requires insurers to charge the same premium inside and outside the exchange for the same product. It seems challenging for the exchange to negotiate premium rates with insurers under those constraints.
The second report outlines proposed steps for policy makers to protect the affordability of plans and and make the exchange more stable.
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