The public exchanges are giving commercial carriers a chance to sell subsidized qualified health plan coverage to moderate-income consumers.
Now the Obama administration is working on rules that could help some states create major new nonprofit competitors, as well.
The Centers for Medicare & Medicaid Services is getting ready to publish the rules – proposed funding methods for a “Basic Health Program” program – in the Federal Register next week.
The Patient and Protection and Affordable Care Act lets people with incomes from 133 percent to 200 percent of the federal poverty level use new tax credits to pay for coverage bought through the exchanges.
Consumer groups that thought the commercial exchange plan system would be too expensive persuaded Congress to put a basic plan system provision in PPACA, in Section 1331.
PPACA Section 1331 lets states set up health insurance programs for residents with household incomes between 133 percent and 200 percent of the federal poverty level who aren’t eligible for Medicaid, the Children’s Health Insurance Program or employer-sponsored health coverage.