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Which State Exchanges will have the greatest impact?

January 24, 2013 

(1) California
The state’s decisions thus far open the insurance market to intense competition with the selection of Kaiser as the Exchange Benchmark Plan, the requirement that any plan offered in the Exchange must be offered in the private commercial market and the receipt of $674 mm in federal grant funds for infrastructure and marketing.
2) New York
The state’s small group market was decimated with insurer drop-outs a few years ago.  Expect it to come back strong with the lure of so many uninsured and premium subsidies that should increase affordability.
3) Illinois
The Exchange offers several insurers seeking to usurp an entrenched BCBS Illinois the opportunity to do so.  The Benchmark Plan is relatively “lean” in benefits which should open up room for competitors.
4) Connecticut
The state dumped its Managed Care providers in favor of community Medicaid insurers and selected ConnectiCare HMO as its benchmark plan.  Get ready for fireworks.
5) Arizona
Governor Jan Brewer surprised everyone by expanding Medicaid,  She’ll make sure the State Exchange has enough volume to keep provider rates low.

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