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D.C. exchange may tap premium tax revenue

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The District of Columbia Health Benefit Exchange Authority board has come up with a framework for thinking about how it will earn a living.

Members of the board have approved a working group proposal that calls for the exchange to move toward funding its operations either by trying to tape some of the revenue from an existing 2 percent D.C. premium tax, or by requiring health insurers to pay a new assessment.

The Patient Protection and Affordable Care Act of 2010 (PPACA) requires the U.S. Department of Health and Human Services (HHS) or local agencies to set up exchanges, or Web-based health insurance supermarkets, in all 50 states and the District of Columbia by Oct. 1, 2013.

PPACA drafters provided some federal exchange funding, but only for the first year of operations.