Insurers moving to write coverage in public health insurance exchanges
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(Reuters) — Federally run health insurance exchanges created under President Barack Obama's health care law have drawn applications from 120 insurance plans and added at least one new insurer in 75% of the states, according to a White House memo.
These exchanges, which are a key part of the Affordable Care Act pushed by President Obama, are due to start selling insurance to individuals and small businesses in October. About 35 states have ceded running these marketplaces to the government while another 15 are setting up their own exchanges.
According to a White House memo, one out of four insurers that have applied to sell insurance on one of these federally run exchanges is new to the individual insurance market.
Competition and government subsidies are key factors in keeping premium rates on the exchanges affordable.
Some states running their own exchanges, like California, have released information about participation and proposed rates that indicated rates will not reach the level of "rate shock" that some insurance executives and actuaries predicted.
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