Issue link: http://read.dmtmag.com/i/121480
Commissioner: Fed-Run Insurance Exchange Will Impact All Small Businesses Mississippi's Insurance Commissioner warned of sweeping impacts to small businesses and "rate shock" for younger adults when a new federally-run health care exchange program starts January 1. Businesses who employ 50 or more individuals will be required to offer health care benefits under the program or face stiff federal fines for non-compliance. Chaney, a former state legislator from Vicksburg in his second term as Insurance Commissioner, had advocated the creation of a staterun health care exchange to comply with requirements of the 2010 Affordable Healthcare Act, or Obamacare. But state leaders, including Gov. Phil Bryant, disagreed and blocked the state-run alternative in protest of the federal requirements. Every state in the country has been considering options in the establishment of health insurance exchanges, which are standardized health care programs through which individuals can buy coverage eligible for federal subsidies. The Affordable Care Act requires each state to have a program in operation by January 2014. Chaney said Mississippians are "going to see the federal government come in and run all aspects of health care in the state forever." "A federal program will not be tailored to the specific needs of Mississippi," he added. "The Feds will have two or three major carriers offering insurance," while the state will have no say in regulation of carriers or rates. While Chaney called the notion of a state-run program a "no-brainer," he said his office is now concerned with "mitigating and minimizing the damage" that will result from a federally-run exchange. Chaney also touched on recent severe weather that has led to a rash of insurance claims from central Mississippians, calling it a "miracle" no one was killed in the February tornado that struck Hattiesburg. He said the twister caused an estimated $15 million in damage, heavily impacting the University of Southern Mississippi. The severe hail storm that struck Jackson two days before Chaney's address at Lunch and Learn has already resulted in 30,000 claims, he said. Nearly 3,000 automobiles were damaged in the 10minute downpour of marble and golf-ball sized hailstones. March Lunch & Learn Highlights "If you're under 40 and especially if you're 30, your health insurance costs could rise dramatically under this program," Commissioner Mike Chaney said during a March Lunch and Learn keynote. "And small business is going to be really impacted." "Hail storms are quick, you can't plan for them and they cause a large amount of damage." SPRING 2013 | CONNECTIONS 27